Life is not a single size – nor is life insurance.
Planning for the future can feel exciting and scary at the same time. Whether you are buying your very first policy or planning for the next chapter in your legacy, it is common for you to have questions.
Here are some common questions you may be wondering. (Want a more personal answer – or a quote? Talk to your local ERIE agent.)
- How much life insurance do I still need? A number of factors – including your age, debt, monthly expenses and number of children – can affect how much life insurance you may need to comfortably plan for your future. A local insurance professional such as an ERIE agent can give you a free quote based on your unique needs. As a general rule of thumb, LifeHappens.org experts recommend that you purchase a policy worth 1
- Is not life insurance really expensive? Buying insurance worth hundreds of thousands of dollars may sound like an expensive offer. But the truth is that life insurance is cheaper than you might think. With Erie Family Life, a $ 250,000 life insurance policy can cost less than $ 15 per month 1 .
- Do I need a medical examination to buy life insurance? Not always, but expect to answer some questions. In general, it is more likely that you will need an examination when your age and / or the required coverage increases. For some life insurance policies, your insurance company will need a short medical examination, more commonly referred to as a paramedical examination. It is similar to a basic physical. A specialist in a paramedic degree measures vital values such as your height, weight, temperature and blood pressure. You must also take blood and a urine test completed.
- Can I buy life insurance without a health examination? Not all life policies require you to obtain a paramedical degree. Life policies under $ 100,000 usually require you to fill out an application (with the help of your agent) before it is reviewed by an insurer 2 . Are you looking for more coverage? Ask your local agent about ERIExpress Life . If you are aged 18-55, you can get an immediate term or full life policy with up to $ 500,000 in coverage by answering several application questions without having to complete a life insurance paramedical medical examination 2 .
- Why should I think about life insurance if I am young and healthy? Life insurance is a smart buy for all ages. Even if no one is dependent on your monthly income, a life insurance policy covers your funeral expenses and debts – including student loans. And there is another benefit to buying a policy at a young age: lower prices. Because insurance companies' risk policies are based on risks (and young people have a significantly lower mortality rate than older groups), your prices are generally cheaper if you are young and healthy. Buying a policy when you are young and healthy makes it easier for you to buy more coverage in the future. In addition, you will have a policy (locked at high speed) now should you need it.
- I have a policy through work. Is that not enough? As part of an overall benefit package, many employers offer some form of life insurance coverage to their employees. Since this coverage is usually paid by the employer, it is a great advantage to have. But it is still wise to keep your own personal life insurance. There are a few reasons for this. First, your employer's coverage may not be enough to support your family in the event of your death. Life insurance provided by employers often covers you for a low fixed amount – such as $ 50,000. In addition, your coverage will be lost if you take another job or are unemployed. Read more in our story about why it is important to have life insurance outside of work.
- I do not work outside the home. Why should I think about life insurance? Being a stay-at-home parent is a full-time job. And even if your work may not generate any income, it will significantly reduce your household costs. Think about all the extra costs associated with child care, transportation and cooking that would arise if you were no longer there. Just because you do not take home a paycheck does not mean that you do not make a significant contribution to your family's results. Read more about life insurance for home parents.
- What is the difference between life and permanent life insurance? Life insurance for a long time provides coverage over a fixed period of time. Forward insurance is a cost-effective alternative to provide protection for your loved ones. With this type of policy, you can choose a term that covers you when you need it most – for example, the time it takes for your children to reach adulthood. Permanent policies, such as comprehensive policies, cover your entire life. 2 This means that your family and beneficiaries are covered throughout your life. Entire life insurance also accumulates cash value, giving you the opportunity to borrow against it in the future. 3
- I'm a mountaineer. Can you still cover me? Assessing risk is a key component for taking out a life insurance policy. Dangerous hobbies – such as skydiving, rock climbing or vehicle racing – put you at risk. But just because you're an adrenaline junkie does not automatically mean you can not get life insurance. Before you make a quote, your insurance agent may ask you to fill out a written questionnaire to understand more about your hobby. In many cases, you can still get insurance. Just expect to pay a little extra to take into account the additional risk.
- Can I "stretch the truth" a bit in my life insurance application to get a better interest rate? When you apply for a life insurance policy, you will be asked questions about your profession, health, family medical history and potentially risky hobbies. Although your answers to these questions may affect your insurance premiums, you should always answer them truthfully. Incorrect presentation of your health status or other important information in your application can lead to negative consequences that may affect your coverage.
- Couldn't my family just crowdfund my final expenses if I die unexpectedly? Websites like GoFundMe provide a platform for users to request donations online to cover funeral and funeral expenses or to fund other memorial services in honor of a loved one who has passed away. But crowdfunding is no substitute for life insurance. Unlike a life insurance policy, the amount of money you collect is completely unpredictable – and can be further reduced by fees and taxes.
- What is a life insurance policyholder? A beneficiary is a person or entity designated to receive the money from your life insurance policy in the event of your death. Your beneficiary can be a person, company, trust, charity, church or even a school. An insurance policy can have more than one beneficiary.
- How do I choose a beneficiary? Choosing a life insurance policyholder depends largely on how you want your life insurance benefit to be used at your death. If you have young children, it can be a way to get your children's care in your absence by naming a spouse or close family member that you trust as your beneficiary and remembering your wishes. Adult children can use the insurance benefit to pay for college. Ask your ERIE agent how to donate your benefit to a charity, school or church. In such cases, it is recommended that your gift conforms to an established pattern of giving or supporting. Read our related article on how to choose a life insurance policyholder.
- Can I be the recipient of a lost life insurance? It is estimated that $ 1 billion in benefits from forgotten and lost life insurance policies are unreserved in America. Based on these statistics, it is possible that you may be a beneficiary of a life insurance policy that you do not know. Organizations like the National Association of Unclaimed Property Administrators, which runs missingmoney.com, allow you to do a quick online search. Read more in our related blog story on how to find a lost life insurance policy.
- I have no children. Why should I think about life insurance? The need for life insurance is not limited to parents. Whether you are entering adulthood or approaching retirement, everyone can benefit from owning a life insurance policy. In addition to supporting children, a life insurance benefit can be used to cover expenses such as funeral expenses or to pay off any outstanding debts.
We are here for you
When you are busy caring for others, a trusted partner can anticipate your needs and help carry the burden. And when it comes to life insurance, we're here for you. Your local agent can help you consider the variables, set up options, and make the process convenient and efficient.
Read more about life insurance options from Erie Family Life or talk to your local ERIE agent for a free quote.
1 Eligibility will be determined at the time of application based on applicable warranty guidelines and rules in force at that time.
2 Individual exam requirements vary depending on the company depending on age and scope. Your agent can help you decide if you need one. Exams can also be ordered at the insurer's discretion.
3 Coverage may lapse or guaranteed death benefit may cease if no premiums are paid after the initial premium, if subsequent premiums are insufficient or if the account value is reduced through withdrawals or loans.
ERIE® Life Insurance Products and Services Provided by Erie Family Life Insurance Company (home office: Erie, Pennsylvania). Erie Family Life Insurance Company is not licensed to operate in all states. Go to erieinsurance.com for information on business licenses.