Frequently Asked Questions

The question isn't really how much you need, it's how much money you must replace to ensure your family maintains its standard of living. To figure that out, start by calculating a rough estimate of your annual family budget. Include such fixed expenses as mortgage or rent, auto payments, child care, insurance needs, utilities, medical and dental bills, and other basics. Then add in future expenses such as private school and college and braces or music lessons for the kids. Next, estimate your assets and income. If you are married, will your spouse earn any income? Do you have assets that your spouse could liquidate on very short notice? Do you have three or six months of income readily available as an emergency fund? You should consider how much of your income must be replaced over a period of several years to arrive at an understanding of your life insurance amount.

For most people, term insurance is the most sensible and affordable way to go. It provides coverage for a specific period of time (or term) – usually 10 or 20 years. At the end of that term, the policy may be renewable for an additional number of years. With Term insurance your payment stays the same for the term of the policy, and you can decrease the coverage as you get older. The amount you select is paid upon death to the person(s) you choose to be your beneficiary. Whole life insurance, on the other hand, provides life insurance for your entire life. Cash values can grow over time and can be borrowed. As a result, you're paying not only for insurance, but for the investment portion -- a kind of "forced savings" for later years – which makes it more expensive.

In most cases, it makes a lot of sense. Even though the breadwinner is the most likely candidate for life insurance, a stay-at-home parent's contribution to the family's standard of living is also important. In fact, when you add up the costs for daycare, meal preparation, bill paying, running errands and more, it's estimated that the stay-at-home parent contributes the equivalent of $70,000 year to the family's standard of living. Consider: if something happens to the caregiver, could you really comfortably afford daycare and other child raising expenses? Children can also benefit from life insurance. Insurance rates will almost certainly go up, and by purchasing a universal life policy for your child today, you can help assure that he or she can carry it into adulthood at current lower rates. Your son or daughter may also convert term life coverage into a universal policy down the road…and that's especially valuable if a health condition arises.

If you lose your job, you will most likely lose your insurance. Most certainly, even if you're still covered by your employer's insurance, you'll lose your favorable rate, which was negotiated for you as part of a group policy. In any event, your coverage from your employer may simply not be enough. Typically, work-sponsored life insurance is no more than one to three times your annual income. If you add up your mortgage, childcare and other important expenses, you'll quickly discover that your work-sponsored coverage won't get those you leave behind very far. It's virtually always good to supplement your meager work-sponsored policy!

Absolutely! We specialize in finding insurance for almost anyone. For example, if you have high blood pressure, we can negotiate preferred rates for you depending on recent readings. And we've had great success working with those who have been diagnosed with Type I and Type II diabetes.

The bottom line is this: if you are under a doctor's care for health-related issues, and if your condition is under control, you are very likely insurable. Talk to your personal insurance advisor to see how we can help!

Be sure to read your policy carefully. Ask yourself these questions: "Are you covered with a spousal rider? Who owns the policy? Who is the person responsible for paying? Will your policy lapse? What -- if anything -- does your divorce decree specify?" Then talk it over with your personal insurance advisor to see how we can help you during and after your divorce.

The better your health, the more insurance options you are likely to have. The best time to buy life insurance is when you're healthy. For the most part, if your health issue is under control, you will be insurable. Certain conditions – like some particularly onerous cancers - may create problems for you. But before you determine that for yourself, speak to your personal insurance advisor. You may be pleasantly surprised!

Your term policy is most likely renewable to age 95. And you can usually convert it to a whole or universal policy – which covers you for life – before age 70. Your needs are constantly changing, so make sure you speak with your personal insurance advisor to make sure you are covered and your family is protected.