Protect the ones you love

Broker or agent?

You have options when shopping for a life insurance policy. Today, you’ll find brokers that work with a range of companies to help you find the best prices in their network on the coverage you need, but they may not offer the personalized service you’ll find with a direct agent.

Both broker and agents work on behalf of providers to sell you a life insurance policy. It all comes down weighing each against what you’re looking for.

I’ve already got life insurance in my retirement plan. Is it enough?

Many retirement plans provide members with a default level of coverage that you can increase, decrease or cancel altogether. If your employer matches contributions through a 401(k), your plan most likely includes default coverage.

To know whether your 401(k)’s coverage is sufficient for your situation, consider the benefits and drawbacks of investing through your retirement plan.

Am I eligible for coverage if …

• I am a non-US resident? Yes. A number of insurers are willing to provide life insurance to nonresidents, especially if you’re in the US for work or family. You must apply for the policy in the US and be willing to take a medical exam.
• I am over 70? Yes. Most insurers provide life insurance to applicants up to age 75, and a few offer coverage for applicants up to age 80 or even 90. If you’re eligible, the insurer may reduce the level of coverage you’re able to receive.
• I have a pre-existing condition? It depends on the nature of your condition and any treatment you’re receiving to maintain it. Insurers either exclude the condition from coverage, request more details about your condition or automatically accept it. Eligibility and requirements differ among providers, so you might want to speak directly with an agent about products that meet your needs.
• I work in a high-risk job? Yes. But it’s likely you’ll pay a higher premium for coverage than an office worker will. If you’re in a high-risk industry, talk with an insurance expert about your chances of finding an insurer willing to offer competitive coverage for your occupation.

How to get quality protection that won’t break the bank

When it comes to life insurance, you don’t want to overpay. But you also want a policy that leaves your family underinsured when they need it most. Here’s how to make sure you’re getting adequate coverage within your budget.

How do annuities work?

An annuity is long-term investment tool designed to pay out your death benefit as regular income to you or your beneficiary, rather than as a lump sum. Life insurance annuities earn interest at either fixed or variable with either immediate or deferred disbursal.

Fixed annuities earn interest a rate that’s fixed at the time you purchase your policy. While a variable annuity earns interest at a rate that depends on the market, which makes it more like an investment that increases or decreases over time. Your money is distributed into a subaccount that’s managed by a pool of investors, and what you’re paid depends on how well your investment does.

When it comes to how quickly you’ll get paid, you can either set up an immediate annuity that pays right away or a deferred annuity that disperses cash at a later date that you agree on.

Keep in mind that your annuity is valid only as long as your insurer is in business. When you’re looking for a policy, shop with highly rated companies.

Still need help? Get answers to common questions

Do I even need life insurance?

• I'm young, single and no one depends on me. Why should I get life insurance?

  • It’s true that not everybody needs life insurance coverage. But if you carry personal debt — like student loans or a car payment — that payment doesn’t disappear when you die. Debt, mortgages and funeral costs will likely fall on the shoulders of your parents, partner or extended family. There’s no better time to lock in affordable rates than when you’re young and healthy, and you can also fold in disability and other protection to provide income if you find yourself temporarily unable to work.

• Am I better off putting funds into a high-interest savings account?

  • It depends. Most people aren’t fortunate enough to invest in a high-interest account that’s adequate enough to cover outstanding debts while also providing support after you’re gone. Depending on your age and health, you might find a policy that helps you leverage $50 a month for a potential payout of $500,000 or more.

• Aren't I already covered by my health insurance for illness and injury?

  • Not exactly. Health insurance covers medical expenses associated with sickness and injury. But it doesn’t often provide support for bills, debts or loss of income if you can’t work for an extended time — or ever again. Life insurance covers the gap between what your health insurance covers and additional the costs of ongoing treatment, rehabilitation and loss of income.

How can I get a life insurance quote?

• How do I get a quote?

  • Most providers allow you to get a quote online or by phone without disclosing your personal or financial information. A certified insurance consultant or agent can talk with you about the different policies out there that match your needs, providing a preliminary quote based on your age, gender and more.

• Why can't I receive a quote online?

  • You might be able to get a quote online, especially if you’re young or have an uncomplicated medical history. But life insurance is not as straightforward as other types of insurance, and the coverage and premiums available to you can vary wildly by age, health and habits. For a quote that more closely matches what you might find when you apply, talk with an agent about the type and level of protection you’re interested in. They can analyze your specific personal information, occupation, lifestyle and habits against your options for a more accurate idea of the premium you’ll pay.

How do I apply for coverage?

• Who can apply for life insurance?

  • US citizens, permanent residents in the US at the time of applying and nonresidents can apply for coverage, though age restrictions vary among brands and products.

• What if I already have coverage in place?

  An insurance agent can help you review your current policy to help you decide whether you might benefit from switching to another provider or policy or increasing or decreasing the level of coverage in your current one.

• Who do insurers classify as a smoker?

  • If you’ve used tobacco at all within the past 12 months — whether casually or often — most insurers will classify you as a smoker.

• Can I take out coverage with my spouse or partner?

  • Yes. Generally, a single policy can cover two people. Many providers offer discounts for joint policies.

• Can I add my partner to my life insurance policy later?

  • No. You’re generally required to take out a separate policy for your partner if you choose not to add them when you sign up.

• Do I need to submit to a medical or blood test when applying?

  • Maybe. But many insurers require medical or blood tests at application only if you indicate a pre-existing condition.

• Can I get coverage if I have a medical condition?

  • It’s likely, but coverage often depends on the provider, your condition and how you’re treating it. Providers enforce different requirements for pre-existing conditions, and so you’ll want to disclose your medical condition if asked. Your insurer might decide to exclude your pre-existing medical condition from your coverage. For instance, if you have a history of back problems, your insurer may exclude all claims related to back conditions from your policy.

• Is there anything I can do if I've paid for coverage and my condition is not covered?

  • Yes. You generally have two options:

  • Talk with an insurance agent or expert who might know other providers willing to cover you. Not every life insurance company assesses conditions in the same way, and you might find a provider that specializes in high-risk life insurance.
  • Ask your current provider to review your condition when it comes time to renew your policy. If your situation has changed, it might be willing to life the exclusion.

What won’t my life insurance policy pay for?

• When can my provider refuse to pay out my policy?

  • Generally, most providers cover all deaths but those that result from suicide or occur within the first two years of the policy. A limited form of life insurance like accidental death and dismemberment (AD&D) will cover death that results from an accident.If you have a pre-existing medical condition, your policy may exclude death that results from it for a set number of years from your policy’s start date.

• When can my provider reject a claim for disability or critical illness?

  • Most policies will not pay a benefit for claims arising from:

  • Intentional self-inflicted injury or self-harm.
  • HIV/AIDS, hepatitis B, hepatitis C and other diseases unless contracted through the duties of your occupation.
  • Claims related to pregnancy, uncomplicated childbirth or miscarriage.
  • Claims caused by your engagement in unlawful acts.
  • Claims from aviation activity, unless you are a fare-paying passenger on a scheduled flight.

How do I manage my life insurance policy?

• Can I increase or decrease my level of coverage?

  • Yes. Talk with your provider about increasing or decreasing your coverage at any stage to meet your needs. Expect to participate in another round of assessments with your insurer, however.

• Can I add or remove beneficiaries from my policy?

  • Yes. Most providers require you to speak directly with an agent, but you might be able to start the process through an online account.

• Can I cancel my policy?

  Yes. Most policies offer a 30-day “cooling off” period, whereby you can cancel your policy and receive a refund of any premiums you paid so far. You’re not eligible for premium refunds if you cancel your policy after this 30-day period.

• Am I covered overseas?

  • It depends on your policy. Some policies provide coverage 24/7 anywhere in the world, while others exclude countries the US has issued travel advisories or warnings for.

How do I make a claim?

• When I die, how is my claim paid?

  • If you die while your policy is active, your life insurance provider pays out your death benefit to your designated beneficiaries. A beneficiary or representative of your estate will need to notify your provider of your death, completing required paperwork and submitting a death certificate to prove your claim.

• What will my beneficiary need to provide to claim a benefit after I die?

  • While requirements vary by provider and policy, your beneficiary will likely need to provide:

  • A completed claim form.
  • The original policy document and schedule.
  • A copy of the policyholder’s birth certificate.
  • A copy of the policyholder’s death certificate.
  • A certified copy of the policyholder’s will.
  • Probate or letters of administration.

• Do I have to keep paying premiums if I make a claim for injury or illness?

  • You might. Typically, your provider reduces your benefit by the amount you’re paid out and adjusts your premiums accordingly.

• What happens if I can't make a life insurance payment?

  • First, contact your insurer immediately to explain your hardship and discuss next steps. You might be able to freeze premiums for a short time until you’re back on your feet.

• How many people can I designate as beneficiaries on my policy?

  • It depends on your provider. But most policies allow you to nominate up to five beneficiaries.

• What happens if I don't designate a beneficiary for my benefit?

  • In most cases, the claim is paid to your estate.

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