Life Insurance

1. What is life insurance, and why do I need it?

Life insurance is a policy that provides a lump sum payment to your beneficiaries if you pass away. It helps ensure that your loved ones have financial support for living expenses, mortgage payments, education, or other costs during a challenging time.

 

2. What types of life insurance policies are available?

There are several main types:

• Term Life Insurance: Covers you for a specific term, such as 10, 20, or 30 years. It’s generally the most affordable option.

• Whole Life Insurance: Provides lifelong coverage and includes a cash value component that grows over time.

• Critical Illness Cover: An optional add-on that pays out if you’re diagnosed with a serious illness specified in the policy.

• Income Protection Insurance: Pays a regular income if you’re unable to work due to illness or injury.

 

3. How much life insurance coverage do I need?

Your coverage needs depend on factors like your income, debts, lifestyle, and dependents. A common guideline is to aim for coverage worth 10-15 times your annual income, but a personalized assessment will give you the best estimate.

 

4. Who should be the beneficiary of my life insurance policy?

A beneficiary is the person or people who will receive the policy payout. Typically, people name a spouse, partner, children, or other close family members as beneficiaries. You can designate multiple beneficiaries and specify what percentage of the payout each should receive.

 

5. How does term life insurance differ from whole life insurance?

Term Life Insurance: Offers coverage for a fixed period and generally has lower premiums.

Whole Life Insurance: Provides lifetime coverage with a cash value component, which can serve as a long-term investment, but typically has higher premiums.

 

6. Can I get life insurance if I have a pre-existing medical condition?

Yes, many insurers offer coverage for those with pre-existing conditions, though it may affect your premiums or policy options. Our advisors can help find insurers that specialize in providing coverage for people with medical histories.

 

7. Is life insurance expensive?

Life insurance costs vary based on factors such as age, health, lifestyle, and the amount of coverage you need. We work with a variety of insurers to find affordable options that fit your budget and protection needs.

 

8. How does the application process work?

The process generally includes an initial application, health questions, and sometimes a medical exam. Once approved, you’ll receive your policy documents. We handle all the details to make the process smooth and efficient.

 

9. What is critical illness cover, and should I add it to my policy?

Critical illness cover is an optional add-on that pays a lump sum if you’re diagnosed with a specified serious illness, such as cancer, heart attack, or stroke. It can be beneficial if you want added financial protection for potential healthcare costs or time off work.

 

10. What happens if I stop paying my premiums?

If you miss premium payments, your policy may lapse, and coverage will stop. Some policies have a grace period, so if you encounter financial difficulties, it’s best to contact us to discuss options before coverage is affected.

 

11. Can I increase or decrease my life insurance coverage later on?

Yes, many policies allow you to adjust coverage, especially after major life events such as marriage, the birth of a child, or purchasing a home. Our advisors can guide you through the process to ensure your policy continues to meet your needs.

 

12. What is an income protection policy?

Income protection insurance provides regular payments if you’re unable to work due to illness or injury. It’s designed to replace a portion of your income, helping you cover essential expenses until you can return to work.

 

13. Does life insurance have a cash value?

Only certain types, like whole life and universal life insurance, accumulate cash value over time. Term life insurance does not build cash value.

​

14. Can I have multiple life insurance policies?

Yes, you can hold more than one life insurance policy if you need additional coverage. For instance, you might have a personal policy in addition to one provided through your employer.

 

15. How do I get started with a life insurance policy?

Getting started is easy! Contact us for a free consultation. Our advisors will help you understand your options, assess your needs, and guide you in choosing the right policy.