With the help of highly trained agents and advancements in technology, securing life insurance has become easier and more approachable than ever.
This does not mean consumers aren’t without questions though, and we get it! To help, we’ve rounded up seven of our most frequently asked questions and we’re serving them with some up-to-date answers.
How much will life insurance cost me over time?
While the answer to this question will vary from situation to situation, let’s consider a couple of scenarios to help us get a feel for the numbers.*
Scenario one: A 26-year-old woman secures a life insurance policy with a 20-year term. Her policy comes with $50,000 in coverage and costs $13/month. Should she survive the entirety of the 20-year term, she would have spent a total of $3,120 while her policy was active.
Scenario two: A 33-year-old man secures a life insurance policy with a 15-year term. His policy comes with $500,000 in coverage and costs $34/month. Should he survive the entirety of the 15-year term, he would have spent $6,120 while his policy was active.
As you can see, factors like term length and coverage amount affect how much you’ll pay over time. And remember, age has a big effect on premiums, so the sooner you can put your policy in place, the better!
Not exactly sure where to start? With an easy application process, no medical exam requirement2 and up to $1M in coverage, term life insurance offers life insurance on your terms and might be the best fit for you!
Pro-Tip! Consider adding a return of premium rider which would refund your payments should you outlive your policy’s term.
Will life insurance cover my home if I were to die?
Mortgage protection insurance is an affordable term life insurance policy specifically designed to protect your home should you pass away. Generally, the term-length (number of years) of the policy matches the term-length of your mortgage.
If you pass away during the time your policy is active, the insurance company will cover the remainder of your mortgage payments, significantly easing the financial burden your loved ones would incur.
Will I still have life insurance if I lose my job?
In most cases, life insurance that is provided through an employer will end when you are no longer an employee. Because of this, and because premium rates only go up with age, it’s best to always have an active policy separate from, and in addition to, any policy provided by your job.
What are the qualifications for life insurance coverage?
When insurance companies are deciding who they are willing to qualify for coverage, they are taking into consideration age, lifestyle and overall health.
When you apply for life insurance, your application will go through a risk assessment process called underwriting. Policies like Quility Level Term have what’s called simplified underwriting and do not require a medical exam.**
If you do not qualify for a term life insurance policy with simplified underwriting, you’ll have to go through traditional underwriting and a medical exam will be required. Often, this process is less about qualifying vs. not qualifying for coverage, and more about how your risk factors will affect the rate of your premiums. These medical exams are similar to an annual physical and will primarily assess blood pressure, sugar and cholesterol levels, major diseases, tobacco/drug use and family health history.
For policies with traditional underwriting, we recommend connecting with a Quility licensed agent who can shop for policies on your behalf and evaluate which insurance companies would be likely to approve your application.
When will I receive my policy?
If you apply for a policy that requires traditional underwriting, the approval process usually takes anywhere from three to eight weeks.
For policies with simplified underwriting, like Quility Level Term, policies are delivered to your inbox immediately; you can go from application to approved in 10 minutes or less!
When does my policy go into effect?
Your policy’s effective date is the date you sign your policy paperwork and pay your first premium. Your policy will remain active or “in force” so long as your premiums are paid in full and on time.
Will my premiums and/or death benefit change over time?
While both level (unchanging) and non-level (potentially increasing or decreasing) premiums exist across policy types, most term and whole life insurance policies come with level premiums and a death benefit that does not change in value.
*For certain carriers
**Most individuals will qualify for life insurance coverage without the need for a medical exam.