What is life insurance?

• Life insurance is a contract between you and an insurer, where you pay regular premiums in exchange for a payout (death benefit) to your beneficiaries upon your death. It helps provide financial support to loved ones after you’re gone.

What is the difference between term life insurance and whole life insurance?

• Term life insurance offers coverage for a specific period (e.g., 10, 20, or 30 years). It’s more affordable but doesn’t build cash value.

• Whole life insurance provides lifelong coverage, with premiums that don’t increase over time. It also builds cash value, which can be borrowed against or withdrawn.

How much life insurance do I need?

• Your life insurance needs depend on factors like income, debts, number of dependents, and future expenses (e.g., college costs or mortgage payments). A general rule of thumb is to have coverage 10-15 times your annual income.

Do I need life insurance if I’m young and healthy?

• Yes! Purchasing life insurance while you’re young and healthy ensures lower premiums. It also guarantees coverage in case of unforeseen health issues later in life.

Can I get life insurance with pre-existing conditions?

• It’s possible, but pre-existing conditions may affect your premiums or eligibility. Insurers may require medical underwriting to assess risk, or they may offer a policy with exclusions or higher rates.-

How do I choose a beneficiary?

• A beneficiary is the person or entity (like a trust) who will receive your death benefit. Choose someone reliable and someone who will use the money to cover final expenses or provide financial security.

What happens if I miss a premium payment?

• If you miss a premium payment, your policy may enter a grace period (usually 30 days), during which you can still make the payment. After that, your policy could lapse, and you may lose your coverage.

Is life insurance tax free?

• Yes, in most cases, the death benefit paid to beneficiaries is tax-free. However, certain situations (such as large estates) might trigger estate taxes or other tax obligations.

Can I change my life insurance policy later?

• Yes, you can make changes to your policy, such as adjusting coverage, switching beneficiaries, or adding riders (like critical illness or disability riders). Some policies may also allow you to convert from term to permanent life insurance.

How long does it take for the death benefit to be paid out?

• It typically takes a few weeks to a few months for beneficiaries to receive the payout, depending on the complexity of the claim. The process involves submitting a death certificate and any other required documentation.