Life Insurance FAQs

I have group life insurance through my work, do I need a separate individual policy?

Yes! Group life insurance is usually temporary and offered in relatively small quantities, meaning you run the risk of becoming uninsurable and under insured. If your employer offers life insurance it is best to take it, but supplement it with individual term life insurance that you can count on.

Disadvantages of group term insurance through work

  • Temporary Coverage. Typically Group term insurance is only temporary coverage and an individual insured may lose the coverage when he or she leaves the group or is no longer eligible. Group term coverage ends upon retirement or termination of employment unless converted to individual coverage, which can be very costly.
  • Taxes. Group term insurance coverage exceeding $50,000 is taxable under IRS Table I (for nondiscriminatory plans).

Am I in a contract for 10,15,20 or 30 years when buying term life insurance?

No! Life insurance becomes more expensive every year of your life so you can purchase 10,15,20 or 30 year terms that guarantee both your rates and your insurability for the term you choose. Only the life insurance company is bound to these terms. 

How long of a Term should I purchase?

You should purchase a term long enough to reach your retirement or at least until all your dependents are out of the nest.

How much Life Insurance do I need?

Here are a few things you should consider when determining how much life insurance you will need to cover your family's needs.

  • Burial Expenses - the average funeral expense is $8,000 - $10,000
  • How many years will your family need income in order to make ends meet
  • Home mortgage
  • Debts - student loans, cars, credit cards, business loans, etc.
  • College fund for children
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