Life Insurance FAQs
Life Insurance FAQs
Have questions about life insurance? Browse various life insurance questions and answers through the topics linked below.
General Life Insurance Information
How much life insurance do I need?
Since life insurance replaces lost income if something happens to you, the proceeds from your policy should be enough to cover immediate expenses as well as to provide continuous income for your beneficiaries.
Most financial planners recommend coverage that‘s 5 to 10 times your annual income. For example, if you make $50,000, you might consider coverage between $250,000 and $500,000. If you‘re younger and just starting a family, you might need as much as 15 times your income to allow for salary increases.
Since individual needs vary, we recommend that you speak to one of our licensed sales agents to help you determine what‘s right for you. We also recommend you consult your attorney or financial advisor for professional legal, tax and financial planning advice.
What if I already have a life insurance policy?
If you wish to replace a life insurance policy with one through SelectQuote, you should not cancel your old coverage until you have received, reviewed and accepted your new policy. Cancel your old policy after all final requirements for the new one are complete and you have received notification from the insurance company that your policy is in force.
Please make sure to consult your legal or tax advisor. The surrender of cash value policies may involve surrender penalties and tax consequences. New policies have contestability and suicide period provisions.
What is spouse life insurance?
The need for term life coverage applies equally to income-earning spouses, and there are strong arguments for acquiring life insurance for a partner who is not drawing an income as well. For instance, losing a stay-at-home spouse can lead to dramatically increased child-care costs, time away from work for the surviving spouse, final expenses, the settling of outstanding debts, and these are just the financial aspects of such a serious loss. The rule of thumb is to get at least 50 percent of the term life coverage for a stay-at-home spouse as for the primary breadwinner.
How much does life insurance cost?
The cost of life insurance depends on the amount of financial security you want to leave to your beneficiaries. Life insurance can help replace income, cover mortgage payments or a child’s tuition, so it’s important to consider your expenses when determining coverage. Let us help you with our insurance calculator.
How long does it take to get a policy?
Typically, it takes 4-7 weeks after your application is submitted to get the policy in your hands.
Do I have to take a medical exam?
For term or permanent life insurance, most companies require a brief medical exam. However, the exam is at no cost to you and takes place at your home or office when it‘s convenient for you—it usually takes less than 20 minutes. Learn more about medical exams.
Can I renew my policy?
Yes. Your policy will automatically renew when your insurance policy expires—no medical exam required. However, premium charges may increase as carriers update their pricing. At this time, we can help you shop around to make sure you’re still receiving the coverage you need at a price that fits your budget.
Do kids need life insurance?
None of the companies we represent offer separate policies for children, but many do have inexpensive “child riders.” Usually, for one flat fee applied to the parents‘ coverage, each of your children (current and future) can be covered for up to $25,000. Ask your SelectQuote licensed sales agent about the options available in your state.
Life Insurance Coverage
How long do I need life insurance coverage?
The length of coverage you need depends on several things, but the most basic consideration is how long you expect your beneficiaries to be dependent upon your income. If your spouse is your beneficiary, you should consider being covered until you plan to retire. If it‘s your children, you‘ll probably want to protect them until they‘re 18 or finish college. To cover a mortgage, choose a policy that will be in place for at least the length of the loan. Depending on your age, you can purchase policies guaranteed for 10, 15, 20, or even 30 years.
Can I change my coverage?
If life events such as a job change, new child or new home require you to reassess the amount of life insurance coverage after purchasing a policy, we can help. Whether you’re considering changing your coverage amount, length of term, beneficiary or more, we can help modify your existing policy or help shop for a new one.
Term and Whole Life Insurance
What’s the difference between term and whole life insurance?
Term life insurance is issued for a specific period of time, typically 10, 15, 20, 25 or 30 years. A whole life insurance policy lasts as long as you pay the premiums. Term life insurance is less expensive than whole life insurance because it is limited to a specific period of time.
Can I convert my term life policy to whole life insurance?
Yes. All term policies offered by the life insurance companies we represent are convertible to permanent insurance—such as whole life or universal life insurance—at various times during the term of the policy. While this benefit is usually included, it does expire. One advantage of a conversion is that you can convert your term policy to permanent insurance without having to take another medical exam or reapply, no matter what may have changed in your health. This option provides reassurance and flexibility should your health or insurance needs change.
SelectQuote Life Insurance Information
How do I apply for life insurance?
With SelectQuote, it’s a simple 3-step process:
Step 1: Get started by requesting a free quote.
Step 2: We’ll instantly find the best option for your needs based on your health and lifestyle. Remember, our services are free and unbiased. After selecting the plan, you will likely need to complete a medical exam.
Step 3: Following your medical exam, the insurance carrier you’ve selected will provide you with a policy offer.
Is SelectQuote licensed to sell life insurance in my state?
SelectQuote is licensed to sell life insurance in every state, with the exception of South Dakota. What’s more, your personal representative is fully licensed in your state, so you‘ll be able to speak to someone who knows your state‘s rules and requirements.
What life insurance companies does SelectQuote represent?
SelectQuote only represents highly rated life insurance companies* in order to provide you with competitive and comprehensive coverage options. We regularly monitor carriers’ products and pricing to ensure that the companies we represent meet our high standards of service.
Learn more about the highly rated life insurance companies* we represent. Availability of companies and products varies by state.
Is my information confidential?
Your information is completely confidential. No one has access to your information other than SelectQuote, and, once you’ve chosen one of our highly rated companies*, the insurer you decide to use. We never sell your name, address or personal information.