October 22, 2021

Life Insurance FAQ's

This information is provided to help answer some of the most frequently asked questions about life insurance. 

PLEASE NOTE... these are general responses you should refer to your policy or check with your insurance agent to verify this information. 


Who Needs Life Insurance?

What is the Right Kind of Life Insurance?

How Much Life Insurance Do I Need?

When I bought my life insurance policy, the agent said it would be "paid up" after ten years, but it’s been that long and I’m still getting bills. Why?

Who can take out a policy on my life?

Must my beneficiary have an insurable interest?

What about companies that advertise “no physical exam?”

Some life insurance ads claim “you cannot be turned down.” What's the catch?

Why is term life often called “temporary” insurance?

What do I get when I buy term insurance?

Does that mean I've wasted my money if I don't die?

An insurance agent has suggested I switch term companies every couple of years to take advantage of the company's promotional rates in the first couple of years. Anything wrong with that?

I understand my permanent policy would be “fully paid up” at age 65. What does that mean?

What happens to the cash value after the policy is fully paid up?

What is a “participating” policy?

An insurance agent has suggested that I buy term instead of whole life. Does it make sense to buy term and invest the difference?

For 10 years I paid the insurance company $1,000 every year. That's $10,000! But when I cashed in the policy they sent me only $5,800. Where did the rest of my money go?

How much cash value is in my policy?

What happens to the cash value in my policy when I die?