F.A.Q
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What happens if I die without life insurance?
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After covering the immediate cost of your funeral or burial, your family, loved ones, and those you financially supported are forced to find other ways to pay for the things you and your income were responsible for.​
How much should I spend on my life insurance?​
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Every family has different needs and goals. Your life insurance premium should be a manageable payment that's always made on time. There are multiple different methods of estimation out there, truth is the best way to ensure you are not overpaying and sufficiently insured is to talk to a professional broker who understand your unique situation.
Do I need life insurance?
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If your answer to either of the following questions is "Yes", then you most likely need life insurance.​
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Does anyone other than yourself depend on your income to live?​
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Would anyone other than yourself have to fund your funeral if you were to pass away?
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I have life insurance through work, do I need more?
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Most likely, Yes. Typically the coverage you have through work is term coverage with a benefit amount that is close to one year of your salary. For most families this is not a sufficient amount of coverage if the worst were to happen.
Why does my price go up every few years ?
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You most likely have a Renewable Term Life insurance policy that is automatically renewing and increasing the price (not the benefit) as you get older.​
Why do I need to review my policy? I've had it for years.
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May not be sure of exactly what you have, if you have the right type or amount.
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If your living or responsibility circumstances changed. Married, kids, new mortgage, Retiring, etc.
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Improved health or lifestyle change. Like 2 years since a stroke or you quit smoking.
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Check for lower rates or policy upgrades.
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Make sure you have the riders you want.
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Ensure your Beneficiaries are correct.
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Check for Loans (sometimes taken automatically due to Automatic Premium Loan)
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Check to see if your policy expires. If so, when does that happen?
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Check Cash Value amount
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Check to see that current cost of insurance has not exceeded premium.
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Just to name a few...
Can a Broker help me review my current policy?
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Absolutely! A thorough policy review is a pivotal part in determining what your needs are and helps our brokers ensure you are maximizing your insurance benefits.
How often should I review my policy?
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Depends on the type of policy, but as long as you don't receive any letters or see any changes in your premium and make all of your payments on time, every 2 years should be just fine.​
Can my spouse and I be one the same policy?
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Yes, but they are not as common as individual policies. These are called joint policies and typically work on either a first to die or last to die basis, but do not pay out twice.​
Wait, life insurance expires?
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Some life insurance can expire, yes. Most term policies and some universal policies expire before the insured dies. Whole life insurance is the only kind guaranteed to never expire as long as premiums are paid.​
What if I miss a payment?
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After your first missed payment you have up to 90 days to make all the required premium payments or your policy may be terminated.
Can I take a loan or cash out of my policy?
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If you have a policy that builds cash value you can typically take a loan from your policy for a small interest rate or possibly cash out of your policy all together.
Can I change my mind once I buy life insurance?
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After your policy is approved and issued you have what is called a "free look period" of 3-60 days to decide if you want to keep the coverage.
Life Insurance Facts and Statistics
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In 2020, 54% of American adults had life insurance. 58% of men have coverage while only 47% of women are covered.
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40% of American adults know they are under insured or lack the life insurance coverage they need.
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42% of families would face financial hardship within 6 months of the majority income earners death, and 25% say they would suffer within a month.
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In 2021, 47% of Adults have said they put off purchasing the life insurance they know they need, although 36% of adults said they intended to purchase within a year.
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The top 2 reasons for purchasing life insurance are to cover final expenses and to protect loss of income to support family/loved ones.
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The number one reason people say they don't buy life insurance is because they believe the cost is too high, however, over 50% of Adults overestimate the cost of term life insurance by three times.
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Around 65% of adults that don’t have life insurance say they don’t know how to buy a policy or what type of policy is right for them.
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More than half of adults don’t understand the specifics of their policies.
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Nearly 40% of people who have life insurance wish they would have purchased at an earlier age.
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48% of consumers say they are more likely to purchase life insurance with the possibility of simplified underwriting, including 42% of uninsured adults.
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55% of Adults say they like the idea of avoiding the doctor or paramedical exam.
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A male's average premium is about 12% more than females.
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Typically, the life insurance premiums increase about 5-8% annually if your in 40's or below, and can be as high as 10-12% annually if you’re over 50 years old. Meaning if you choose to not buy a policy today, that same exact policy for you would be 5-12% more expensive the following year.
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1 in 3 consumers think you have to pay taxes on life insurance and 4 in 10 aren’t sure. The truth is Life insurance benefits are all paid out tax free to the beneficiary.
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For most age groups, the preferred methods for learning more about life insurance are online and thru financial advisors brokers.
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The majority of American adults go online and do some research before buying a policy.
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More than half of consumers buy life insurance from independent agents.
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Consumer preference for complete online life insurance shopping has increased 29% since it was first possible in 2016.
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Prefer researching online first, then buying from broker or financial professional - 55% of Millennials, 43% of Gen Xers, and 38% of Boomers
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Prefer researching and buying totally online - 28% of Millennials, 32% of Gen Xers, and 29% of Boomers
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Would like to meet a broker or financial professional before buying (in person or video call) - 71% of Millennials, 64% of Gen Xers, and 69% of Boomers
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In 2021, nearly 30% of adults either surrendered a life insurance policy or let it lapse. Many losing money or coverage opportunities because they didn't know their options.
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68% of households that have Life Insurance say they would be financially secure if the primary wage earner passed away versus only 47% of families who do not own life insurance.
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78% of those families with life insurance through employer and personally say they feel secure.
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According to U.S. Bureau of Labor and statistics, the average employer life insurance policy is either a flat $20,000 or equal to 1 years salary.
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Only 30% of adults said they were “very” or “extremely” knowledgeable about life insurance.