FAQ
Life insurance questions? We've got answers.
Term life insurance is a type of life insurance that provides coverage for a specific period, typically 1, 10, 15, 20, 25, or 30 years. If the insured passes away during the term, the policy pays out a death benefit to the beneficiaries.
The amount of coverage you need depends on various factors, such as your income, debts, and the financial needs of your beneficiaries. As a general rule, consider a coverage amount that is 5-10 times your annual income.
Yes, term life insurance is typically more affordable than permanent life insurance policies like whole life or universal life. Since it provides coverage for a specific period, it has lower premiums.
Most term life insurance policies offer the option to renew, but the premiums may increase significantly. It’s essential to check the renewal terms and conditions before purchasing the policy.
Many term life insurance policies offer a conversion option, allowing you to convert your policy into a permanent one without the need for a medical exam. It’s a valuable feature to protect against any health changes.
No, term life insurance policies do not build cash value. Term focus solely on providing the death benefit you desire at the lowest cost.
Yes, some insurance companies offer riders that can be added to term life policies for additional benefits. Common riders include critical illness, disability, and accidental death riders.
It depends on the policy and the insurance company’s underwriting guidelines. Some term life insurance policies require a medical exam, while others offer “no medical exam” options with slightly higher premiums.
Yes, term life insurance policies usually come with a “free look” period during which you can cancel the policy and receive a full refund of premiums paid. The duration of the free look period varies by state and insurer.
Visa and green card holders can still buy life insurance in the U.S. Your policy options will depend on your residency status and type of visa.
Yes, you can replace an existing life insurance policy. However, it’s important to compare the benefits, premiums, and features of the new policy with your current one. Consider any health changes that may affect premiums, potential surrender charges, and ensure there’s no gap in coverage.
