FAQ | pickyourpolicy

FREQUENTLY ASKED QUESTIONS

Q: Do I Really Need Life Insurance?

A: The National Average for a Traditional Funeral is Between $7,000 and $10,000.

Ask yourself the question “what will happen to my family in the event of my death”?

If you are married, your spouse may need financial maintenance to help her/him manage during the years ahead. If there are young children, an education fund may have been started and the proceeds can continue that goal. Your spouse must still continue to pay the mortgage or rent if your death is premature or unforeseen. What about if you have aging parents that still need your help and are dependent on you? Consider some of these issues when thinking about whether life insurance is necessary in your situation.

Q: What is the Difference Between Term and Permanent Life Insurance?

A: There is a Vast Difference Between the Different Types of Insurance.

Term insurance will cover you for a specific number of years, for instance, 10, 20 or 30 years. For the younger ages (below 50), the premiums are considerably lower than Permanent Insurance because there is no cash value and the insurance will stop at the end of the term. Most term insurance contracts will offer a conversion privilege where you can convert the policy to Permanent Insurance without any evidence of insurability at the attained age you apply.

Permanent insurance, which includes Whole Life, Universal Life and Variable Universal Life provides protection for either the lifetime of the insured or until the older ages, such as age 95, 101 or even age 121. The premiums will be considerably higher due to this feature and there may be a cash value accumulation in permanent insurance policies.

Q: What Type of Insurance Should I Buy?

A: You Can Consider Purchasing Term Insurance If You Want to Have an Outstanding Mortgage, If You Want to Complete Your Children’s Educational Savings or If You Have Lots of Outstanding Indebtedness.

Think of about Permanent insurance for final expenses, charitable donations, business purposes, estate planning and possible cash accumulation depending on the policy and terms you select.