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Life Insurance - Frequently Asked Questions

Why should I have life insurance?

What types of life insurance are available?

How much coverage should I have?

How do I choose the right company?

How do I know if I'm getting the best rates?

What are the steps I would go through?

Should I get insurance to pay off my mortgage if I die?

What if I smoke cigarettes or use tobacco, does that affect my insurance rates?

Does my weight affect my life insurance rates?

Why should I have life insurance?

It's unfortunate but people die - some sooner than later. The important point is to do what's right for those you love. A person gets life insurance to make sure that there is money available to maintain the financial life for those who will still be living and have a future. It's a selfless decision in a way since you are looking out for your spouse and/or your children just like you would protect them from dangers and difficulties in life. Our staff and our insurance advisors are here to help you gain more understanding of this subject and help you select the right life insurance policy.

There are benefits for you from having enough insurance while you are living: You'll feel better knowing the ones you love will be able to continue their lives without unnecessary financial disruption; if you have permanent life insurance (whole life or universal life) you can build cash value that can grow tax free. This can help give you the freedom to do other things with your money and investments because you know you have an asset your family can count on - life insurance.

What types of life insurance are available?

There are two main types: Term vs. Permanent Life Insurance:

1. Permanent life insurance is designed to last for your whole life. There are two main categories: Whole lifeand Universal life.

2. Another type of life insurance is Term Life which varies by length of time from 1 year to 30 years. There is also a new type of term life policy called return of premium insurance that refunds you all premiums paid if you keep the policy for the term period.

How much coverage should I have?

The easy answer is you should have enough coverage to replace the income that you would have earned had you been alive to earn it. How do you calculate that amount? There's a section on this site that shows you how to calculate the right amount. Find out how much life insuranceyou should have. There is also a very simple method of calculating the right amount of life insurance for you - take a multiple of your income that is 10 times to 15 times your annual gross income.

How do I choose the right company?

Buying life insurance is a little more complex than purchasing a car or a television. When you purchase a policy you are buying a promise, a contract to pay something in the future vs. buying a commodity or something tangible. It's very important for you to examine the company that's backing your policy as well as considering the cost of the policy. One of the important items to consider when looking at a life insurance company is the financial strength rating of the company. Insurance company financial ratings are described further on this site.

How do I know if I'm getting the best rates?

You can find out if you're getting the best life insurance rates online at our life insurance affiliate, insureme.com. Our search engine searches quickly to find you a customized rate and policy. Search for instant term life insurance quotes and instant quotes on return of premium term life policies and universal life insurance policies. For whole life policies, we'll need to gather some basic information from you to deliver an accurate quote. It's to your advantage to have life insurance professionals from insureme.com (our affiliate site) working for you because they're not affiliated with the companies they provide for you. Therefore, they can look after your best interest without a conflict of interest.

What are the steps that I would go through?

First, choose the coverage amount you desire and then get quotes right here on the site. If it's term, return of premium term or universal life coverage you'll get a market survey right here on the lifeinsure.com site. Then choose the policy that suits your needs and move to the next step.

The next steps are application to the insurance company which we'll help you with, a short medical exam provided by the life insurance company you choose at no cost, a review of your information by the life insurance company, then approval and premium paid and you're on your way.

Should I get insurance to pay off my mortgage if I die?

Getting life insurance to pay off major obligations in case of death is one of the most responsible and generous acts of love you can provide. Feel free to quote inexpensive term life or return of premium life insurance for the amount of your mortgage but also strongly consider getting coverage for the entire amouny that is appropriate for you and your loved ones--not just enough to pay off your mortgage.

What if I smoke cigarettes or use tobacco, does that affect my insurance rates?

The answer is yes it will but you still can get competitive rates. Some companies charge less for tobacco use than others. If you smoke cigars occasionally or chew tobacco occasionally, a few companies will still offer preferred rates. Contact us so we can get the lowest possible rates that match your situation. Also, if you get a life insurance policy that includes a rate for tobacco use, it's possible to lower it in future years if you quit tobacco for a number of years and remain healthy. We just go back and work with the insurance company to try to lower your rate and in most cases we can do that for you.

Does my weight affect my life insurance rate?

There are different rate classes for life insurance. When calculating the exact rate for you, the company does take your weight into consideration. Our quoting engine takes your height and weight into consideration when calculating your rate class and premium.