• replace income so your loved ones can maintain their standard of living
• fund education and retirement expenses
• pay off debts, including mortgages and student loans
• cover final expenses like medical and funeral bills

What’s the difference between Whole and Term Life?

• Whole Life insurance has two components: Life insurance and “cash value.” Whole Life insurance doesn’t end after a specified period of time—it’s permanent insurance you can keep your whole life.
• Term Life insurance is the most basic type of Life insurance. It provides protection for a specified period of time or to a specified age. Because it has no savings feature, Term Life is maybe an option for those with financial obligations to cover (like a mortgage) for a set period of time.

Why aren’t my Term Life premiums level?

Many people are familiar with Level-Term insurance: premiums are the same for the duration of your policy.

However, most people don’t realize that mortality risk increases with age, so Level-Term premiums are essentially the average of that risk over the 10- or 20-year term.

Adjustable term insurance offers age-based premiums that increase at specified intervals (such as every five years) to reflect the increasing risk associated with age.

This alternate approach means adjustable term premiums start much lower in early years and increase over time.

How much Life insurance do I need?

It depends how much money your beneficiaries will need. Could your loved ones attend college? Could they pay off the mortgage? You may need Life insurance that’s sufficient to cover all of your debts and expected financial obligations.

Our free online calculator can help you calculate how much life insurance you need. As you move through the exercise, you may be surprised at just how many expenses life insurance proceeds can cover.

For how many years should I purchase coverage?

Situations vary, but your term Life insurance policy should last as long as your outstanding debts and expected financial obligations. If you have education debt, young children to raise and educate, and a mortgage, coverage for 20 years may be appropriate.  However, if you have older children, 10 years of coverage may be sufficient.

Generally, the longer your term, the higher your premium.

Consider this: Life insurance rates are based on your age and health. Your age clearly won’t be reducing. And, if your health deteriorates, you may even become uninsurable. Remember, you can always reduce your coverage or cancel your policy at no additional cost if you decide you no longer need coverage.

Although it may require a higher premium to pay for a longer term up front, you’ll lock in specially negotiated rates and guarantee coverage, no matter what happens with your health.

Can I name my minor child as a beneficiary?

It’s best to avoid naming your minor child as your Life insurance beneficiary. Instead, name a custodian or guardian, or designate a trust account as your policy’s beneficiary to ensure your child’s financial protection. Learn more about how you can help ensure that minors, through the people entrusted with their care, have access to the life insurance proceeds intended for them.

Is my coverage still effective if I move out of the U.S?

Yes.**

How is Accidental Death insurance different from Term life?

Accidental Death insurance (AD) pays benefits in addition to any Life insurance you have. Your beneficiary will receive payment if you have a covered accidental injury that is the direct and independent cause of your death within one year of the injury.

AD insurance can be added as a companion to your Life insurance at any time. Many people add AD since it’s so reasonable—$100,000 of AD insurance costs under 20¢ a day.

Because acceptance is guaranteed, AD coverage can also be used as an alternative when securing Life insurance is not possible due to health or other reasons.

Learn more about Life insurance.^*

* including features, costs, eligibility, renewability, exclusions, and limitations
**Subject to U.S. government regulations on restricted countries.

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