Life Insurance: Frequently Asked Questions You Need to Know

The search for life insurance can often be overwhelming, that is why, at Anderson Financial Services, we have taken the time to answer some of our most frequently asked questions. To help you make this important decision effectively, the answers are very useful, whether you are new to life insurance or looking for an update on your existing coverage.

Introduction to Life Insurance 

Q: So, life insurance is…?

A: life insurance is an arrangement made between the insurance company figure which is supposed to pay out an amount of money, commonly referred to as the death benefit to your dependents should anything happen to you. This continues to provide your beneficiaries with the requisite financial support to settle burial expenses, any debts you might have left behind, and to cater for their day to day living expenses.

2. Why do I need life insurance?

 Q: Am I in need of life insurance?

A: Your life insurance will just act as financial protection for your dependents whenever you pass away. It will save them from a lot of expected financial hardships after your death, leaving your spouse or parent alone, paying off other debts, and taking care of the daily living expenses and your children's education. In summary, it gives you peace of mind in knowing that your family will be taken care of in your financial needs.

3. How Much Do I Need?

Q: How do I find out how much coverage I need?

A: The coverage amount will depend on other parts of your income cover, which will depend on a few factors— and it is too complex to answer for one individual and therefore due to everyone having different lifestyles, goals and facts you would be advised to get a financial adviser to do the evaluation with respect to your specific requirements.

4. What Determines What I Will Pay In Premiums?

Q: What will be the determining factors in what one pays in life insurance premiums?

A: Premiums are determined based on several factors, including your age, gender, health status, lifestyle, occupation, and the type and amount of coverage you choose. Generally, younger and healthier individuals pay lower premiums. Factors like smoking, hazardous occupations, and pre-existing health conditions can increase premiums.

6. Can I Adjust My Coverage Later?

Q: Can I change my coverage if my needs change?

A: Most life insurance policies have flexibility options that let you change your coverage to suit your needs at the time. For example, you can increase your coverage if you have more dependents or decrease your coverage if your financial obligations are reduced. It is very critical to revisit your policy from time to time and find the best fit for you in adjustment of one's plan.

7. What Happens If I Miss a Premium Payment?

Q: What if I can't make a premium payment?

A: Most life insurance policies have a grace period that allows you to clear your premium without losing the insurance in case you missed your premium. If you miss the grace period, the policy will have lapsed, and you may have lost coverage. You should ensure you communicate with your adviser when you feel you will not be able to make your payment; it is critical.

 8. How Can the Death Benefit Be Claimed by the Beneficiary?

Q: How do my beneficiaries take delivery of the death benefit?

A: If you happen to die, the beneficiaries will need to make a claim with the insurance company. They will provide a copy of the death certificate, among other necessary documents. The insurance provider, after approving the claim, will pay out the death benefit to your beneficiary.

9. How Do I Get Started

Q: What are the early steps to acquiring life insurance?

A: These are the early steps to acquiring a life insurance policy:

1. Decide the face amount of the policy you need per your requirements considering your money and its alignment toward goals.

2. Download or order a policy from the insurers.

3. Get quotations from various service providers to compare the rates and coverage.

4. Share your choice with the financial advisor to make the right decision.

5. Apply for the policy that best fits your needs and complete any required physical exams.

or 

1. Sit down with a financial adviser who can provide personalised services to ensure you get the most suitable policy for your needs.

Conclusion

Life insurance should ultimately be about assurance as opposed to a gamble. It is never too late to understand the very foundation and ask relevant questions in order to make the greatest decisions for the financial future of your family. Anderson Financial Services can walk each step of the way. Contact today to schedule a consultation so you can find out more about how life insurance can protect you and your loved ones.

Let Anderson Financial Services help you wade through life insurance with confidence. Contact us today to begin securing your future with your family.