Here, you’ll find answers to the key questions our members often ask. If you still have questions, contact us.
Q: WHAT IS LIFE INSURANCE?
A: Life insurance is a contract between an owner of a policy (usually an individual) and the insurance company. In exchange for a regular stream of payments called the premium, the insurance company promises to pay out a death benefit to the beneficiary upon the death of the life insured.
Q: WHY DO PEOPLE GET LIFE INSURANCE
A: Life insurance is a way to make sure that your family and dependants don’t suffer financially when you die. Life insurance can be used to pay for a funeral, pay off debts (including your mortgage), pay for your children’s education and help your family maintain their standard of living when they no longer have you to support them.
Q: EVERYONE KEEPS TELLING ME THAT I SHOULD BUY INSURANCE WHILE I’M YOUNGER. WHY?
A: One big benefit is that the younger and healthier you are, the lower your premiums will probably be.
Q: WHAT IS THE DEATH BENEFIT AND BENEFICIARY?
A: The death benefit is the proceeds paid by the insurance company to the beneficiary. The beneficiary is the party who receives the death benefit. This can be an individual or other legal entities like a corporation, a trust, or a charity.
Q: WHO NEEDS LIFE INSURANCE?
A: If you have dependents like a spouse and children who will suffer financially if you die, you need life insurance.
Q: I AM RETIRED. DO I NEED LIFE INSURANCE?
A: Life is constantly changing and as a result, so are your life insurance needs. You might not need life insurance to replace your income anymore since you’re retired, but that doesn’t mean you don’t need life insurance at all. If you’re doing estate planning or executing a wealth transfer strategy, then life insurance could help you accomplish these much more easily.