15 Common Questions About Life Insurance

 

Life isn’t one-size-fits-all – and neither is life assurance .

Planning for the longer term can feel exciting and scary at an equivalent time. Whether you’re buying your very first policy or planning for subsequent chapter of your legacy, it’s common to possess questions.

Here are some common questions you would possibly be wondering. (Want a more personalized answer – or a quote? ask your local ERIE agent.)

• How much life assurance do i want , anyway? 

variety of things – including your age, debts, monthly expenses and number of youngsters – can influence what proportion life assurance you'll got to comfortably plan for your future. an area insurance professional like an ERIE agent can offer you a free quote supported your unique needs. As a general rule of thumb, the experts at LifeHappens.org recommend purchasing a policy worth 10 to fifteen times your gross income. try our free life assurance calculator for a personal , no-obligation estimate you'll do right reception .

• Isn’t life assurance really expensive?

 Purchasing an policy worth many thousands of dollars may sound like an upscale proposition. But the reality is, life assurance is cheaper than you'll think. With Erie Family Life, a $250,000 life assurance policy could cost but $15 a month1.

• Do i want a checkup to get life insurance?

 Not always, but do expect to answer certain questions. Generally speaking, it’s more likely you’ll need an exam as your age and/or the quantity of coverage requested increases. for a few life assurance policies, your insurer would require a quick checkup , more commonly mentioned as a paramedical exam. It’s almost like a basic physical. A paramedical exam professional will measure vitals like your height, weight, temperature and vital sign . You’ll even have to possess blood drawn and a urinalysis test completed.

• Can I purchase life assurance without a health exam?

 Not all life policies require you to urge a paramedical exam. Life policies below $100,000 typically require you to only complete an application (with the assistance of your agent) before it's reviewed by an underwriter2. trying to find more coverage? Ask your local agent about ERIExpress Life. If you’re between the ages of 18-55, you'll be ready to get an instant-issue term or whole life policy with up to $500,000 in coverage by answering several application questions without having to finish a life assurance paramedical checkup 2.

• Why should i feel about life assurance if I’m young and healthy?

 life assurance may be a smart purchase at any age. albeit nobody depends on your monthly income, a life assurance policy will cover your funeral expenses and debts — including student loans. And there’s another advantage of buying a policy at a young age: lower rates. Because insurers price policies supported risk (and children have a far lower deathrate than older groups), your rates are generally less costly if you’re young and healthy. Buying a policy when you’re young and healthy makes it easier for you to shop for more coverage within the future. Plus, you’ll have a policy (locked in at an excellent rate) now, do you have to ever need it.

• I have a policy through work. Isn’t that enough?

 As a part of an overall benefits package, many employers offer some sort of life assurance coverage to their employees. Since this coverage is usually purchased by the employer, it’s an excellent benefit to possess . But it’s still knowing hold your own personal life assurance policy. There are a couple of reasons for this. First, the coverage provided by your employer won't be enough to support your family within the event of your death. Employer-provided life assurance often covers you for a coffee set amount — like $50,000. Additionally, your coverage are going to be lost if you're taking another job or end up unemployed. Read more in our related story on why it matters to possess life assurance outside of labor .

• I don’t work outside the house . Why should i feel about life insurance?

 Being a stay-at-home parent may be a full-time job. And while your work might not generate an income, it does significantly reduce your household expenses. consider all the additional costs related to child care, transportation and meal preparation that might be incurred if you were not around. simply because you don’t bring home a paycheck doesn’t mean you aren’t making a big contribution to your family’s bottom line. Read more about life assurance for stay-at-home parents.

• What’s the difference between term and permanent life insurance?

 Term life insuranceprovides coverage over a hard and fast period of your time . Term life assurance may be a cost-effective choice to provide protection for the loved ones you allow behind. With this sort of policy, you'll select a term which will cover you once you need it most — like the time it'll take your children to succeed in adulthood. Permanent policies, like whole life policies, provide coverage over your entire lifetime.2 meaning your family and beneficiaries are covered for the duration of your life. Whole life assurance accumulates cash value, too, providing you the choice of borrowing against it within the future.3

• I’m a cragsman . are you able to still cover me? 

Assessing risk may be a key component of underwriting a life assurance policy. Dangerous hobbies — like skydiving, hiking or vehicle racing — cause you to inherently riskier to insure. However, simply because you’re an adrenaline junkie doesn’t automatically mean you can’t get life assurance . Before supplying you with a quote, your insurance broker may ask you to fill out a written questionnaire to know more about your hobby. In many cases, you’ll still be ready to get insurance. Just expect to pay a touch extra to account for the extra risk.

• Can I “stretch the truth” a touch in my life assurance application to urge a far better rate? 

When applying for a life assurance policy, you’ll get asked questions on your occupation, health, family medical record and potentially risky hobbies. While your answers to those questions may impact your insurance rates, you ought to always answer them truthfully. Misrepresenting your health status or other important information in your application could end in negative consequences which may affect your coverage.

• Couldn’t my family just crowdfund my final expenses if I pass on unexpectedly? 

Websites like GoFundMe provide a platform for users to invite online donations to hide funeral and burial costs, or to fund other memorial wishes in honor of a beloved who passed. But crowdfunding is not any substitution for all times insurance. Unlike a life assurance policy, the quantity of cash you’ll raise is completely unpredictable — and should be further reduced by fees and taxes.

• What may be a life assurance beneficiary? 

A beneficiary is a person or entity designated to receive the funds from your life assurance policy within the event of your death. Your beneficiary are often an individual , business, trust, charity, church or maybe a faculty . An policy can have quite one beneficiary.

• How do i select a beneficiary?

 Choosing a life assurance beneficiary depends largely on how you’d like your life assurance benefit to be used upon your death. If you've got young children, naming a spouse or close loved one you trust as your beneficiary and memorializing your wishes could also be a method to supply for your children’s care in your absence. Grown children could use the insurance benefit to assist buy college. Ask your ERIE agent about the way to leave your benefit to a charity, school or church. In those cases, it’s recommended to possess your gift be according to a longtime pattern of giving or support. Read our related article on the way to choose a life assurance beneficiary.

• Could I be the beneficiary of a long-lost life assurance policy? 

It’s estimated that $1 billion in benefits from forgotten and lost life assurance policies are sitting unclaimed in America. In light of that statistic, it’s possible you'll be a beneficiary to a life assurance policy that you’re unaware of. Organizations just like the National Association of Unclaimed Property Administrators, which operates missingmoney.com, allow you to conduct a fast search online. Learn more in our related blog story on the way to locate a lost life assurance policy.

• I don’t have kids. Why should i feel about life insurance? 

the necessity for all times insurance isn’t limited to oldsters . Whether you’re entering adulthood or nearing retirement, everyone can enjoy owning a life assurance policy. Beyond providing for youngsters , a life assurance benefit are often wont to cover expenses like funeral costs or pay off any outstanding debts.