Life Insurance

Term Life Insurance provides coverage for a specific period (e.g., 10, 20, or 30 years) and pays a death benefit only if the policyholder dies within that term. Whole Life Insurance offers lifelong coverage with fixed premiums, guaranteed death benefits, and a cash value component that grows over time.

The amount of life insurance you need depends on various factors, including your income, debts, living expenses, future education costs for children, and financial goals. A general rule is to have coverage that is 7-10 times your annual income.

Yes, you can have multiple life insurance policies. Many people choose to have a combination of term and permanent policies to cover different needs, such as income replacement and long-term financial planning.

If you miss a premium payment, most life insurance policies offer a grace period (typically 30 days) during which you can make the payment without losing coverage. If the payment is not made within the grace period, the policy may lapse.

Cash value is a component of permanent life insurance policies, such as whole life and universal life insurance, that grows over time. It can be borrowed against or withdrawn, and it can also be used to pay premiums.

Some policies, particularly universal life insurance, offer flexibility to adjust coverage and premium payments. With term life insurance, you may need to purchase a new policy to change coverage amounts.

Generally, life insurance death benefits are not subject to income tax. However, any interest earned on the benefits or withdrawals from the cash value component of a permanent policy may be taxable.

A beneficiary is the person or entity you designate to receive the death benefit from your life insurance policy. You can change your beneficiary designation at any time by contacting your insurance company and completing the necessary forms.

Many life insurance policies require a medical exam to determine your health status and eligibility. However, there are policies available that do not require a medical exam, such as simplified issue and guaranteed issue policies, though these may have higher premiums or lower coverage amounts.

To file a life insurance claim, the beneficiary must contact the insurance company and provide a certified copy of the death certificate and any required forms. The insurance company will review the claim and, if approved, pay the death benefit to the beneficiary. The process typically takes a few weeks but can vary depending on the company and policy.