How much life insurance do I need?
It depends on your financial obligations, including debts, income replacement, education costs for dependents, and future expenses. A common rule of thumb is 10-15 times your annual income.
How much does life insurance cost?
Premiums vary based on factors like age, health, policy type, and coverage amount. Term life is typically cheaper than permanent life insurance.
Who should buy life insurance?
Anyone with any form of financial responsibility should consider life insurance. Many people think of life insurance as only serving to safeguard dependants in the event of death, but it also serves to safeguard themselves as life insurance can provide an income should they suffer a permanent disability or diagnosed with a terminal illness.
Can I get life insurance if I have a pre-existing condition?
Yes, but your premiums may be higher. Some companies specialize in high-risk applicants, and options like guaranteed issue life insurance exist for those with serious health conditions.
What happens if I outlive my term life insurance policy?
The policy expires, and you’ll need to renew it (often at a higher cost), convert it to a permanent policy, or get a new policy. Some term policies offer a return of premium option.
Do I need a medical exam to get life insurance?
Some policies require a medical exam, while others, like no-exam or simplified issue policies, only require a health questionnaire.
These may have higher premiums.
Is life insurance taxable?
In most cases, death benefits are tax-free for beneficiaries. However, if the policyholder’s estate is large, estate taxes may apply. Cash value withdrawals from permanent policies may also be taxable.
Can I change my life insurance policy later?
Yes, many policies allow adjustments, such as increasing coverage, converting term policies to permanent ones, or adding other aspects, like critical illness coverage.
