Life Insurance FAQ's

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Why is it important to have a life insurance policy?

• Your life insurance benefit replaces your salary and helps dependents pay mortgage, utilities, car insurance, and so forth after your death. Your benefit may keep your family from declaring bankruptcy or having to sell your house and other assets.
  
  
• Your benefit pays for death-related expenses such as medical bills, funeral costs, and estate taxes.
  
  
• Some people buy life insurance so that their loved ones or favorite charity can receive an inheritance created by the policy.
  
  
• Finally, "permanent" or "whole life" insurance policies are a way to force savings and create an investment.
  

How much life insurance should I buy?

• If you have dependents, buy enough to replace your income and pay final expenses.

What are the two basic kinds of life insurance?

• Term life insurance pays a benefit if you die during the term of the policy. If you have a 10-year $50,000 policy with $50 premiums, this means you'll pay $50 a month for ten years; and if you die within that time, your beneficiary will receive $50,000.
  
  
• Permanent life insurance lasts your entire life. These policies have a death benefit or "face value" but they also build up a "cash value." You can borrow against this cash value. If you cancel your policy, you'll receive the cash value.

What does the term 'beneficiary' mean?

• A beneficiary is the person or entity that will receive the face value of your policy when you die.

What are the two kinds of term insurance?

• With a level term policy premiums remain same for the entire period of coverage. A decreasing or depreciating term policy means the death benefit goes down during the term of the policy.
  
  
• A renewable policy can be renewed once the term runs out, but often at a higher price as your health and age changes.

What are the different kinds of permanent life insurance policies?

• These are whole, ordinary, universal, adjustable and variable. Permanent policies have a savings account feature and a death benefit. Universal or adjustable lets you change the amount of the death benefit and/or payments. Variable allows you to invest your cash value into stocks, bonds, and money markets. A variable-universal policy combines both features.

Which kind should I buy?

• Term insurance is often the least expensive. It's a great choice if you only need coverage for a certain length of time — i.e., until your children grow up.
  
  
• Whole life insurance is for people who need a lifelong policy with a tax-deferred savings element.

Which life insurance company is the best for me?

• Pick a company that will stay in business a long time, provide good service, and pay its claims. Check the company's financial rating from independent services like A.M. Best, Fitch, Moody's, Standard & Poor's, and Weiss. Look at EVERY rating from EVERY service.

How do I save money on life insurance?

• Through Acculife's affiliate network you can request a quote on the policy that best fits your personalized needs. Our high tech system automatically assists you in finding prices from dozens of A rated companies.
  

Do I need life insurance once all my children are grown?

• You may still need life insurance if you have a disabled child or parent or other dependents, if you are one of a two-earner family, if Social Security and/or other retirement income will not cover your surviving spouse's needs, and to create a security net for you and your family.

What if I cannot afford my premium?

• Whole life policies are designed to last your lifetime — even when you go through a rough financial stretch. You can borrow against the policy to pay your premium or "cash out" the policy. You will forfeit your policy if you don't pay premiums on term insurance.