What is whole life insurance?
A life insurance policy that is guaranteed to remain in force for the insured’s entire lifetime to maturity date, as long payments are made. Whole life insurance is the most predictable type of coverage, your death benefit and cost are guaranteed.
Will my whole life insurance premium ever go up?
No, your premiums are guaranteed not to go up during the specified term as long as premiums are paid according to policy specifications.
Can the company cancel my coverage if I get sick after my term life insurance policy is in-force?
Whole life insurance coverage cannot be canceled as long as premiums are paid according to policy specifications.
How much coverage should I purchase?
In most cases, if you have no dependents and have enough money to pay your final expenses, you may not need life insurance.
If you have dependents, consider buying enough life insurance so that, when combined with other sources of income, it will replace the income you now generate for them. Here are some additional things to keep in mind as you make your decision:
- How many children do you have and how old are they?
- Who primarily cares for your children? Would that change after your death?
- Do you already have college funds and retirement savings?
- Does your spouse work? Would that change after your death?
- What will it cost to pay off your home mortgage and other debt?
- What will it cost for your family to maintain their lifestyle?
What types of payment plans are offered?
A variety of payment options are available, including having your payments automatically deducted from your bank account, monthly or annual credit card payments, and direct bill. Options vary by insurance company.
What is a waiver of premium rider?
This is an optional rider on some life insurance policies that waive the cost of your policy in the event you become disabled.
What is a child rider?
This is an optional rider that provide coverage for your children. Usually the options are between $1,000 to $25,000 of coverage.
Do I have to go through a medical exam to get my coverage?
No, some policies do not require a medical exam.