Do I need life insurance?
Yes. That was easy.
But I am young and healthy.
Still, yes. Also, that wasn’t a question.
How much coverage do I need?
Now we’re getting somewhere. However, much like a college calc exam, there’s no easy answer here. Simple answer: Add up all your debts (mortgage, student loans, credit cards, etc.) and you have a good starting point. Looking for a more exact answer? Just contact us and we can help get more specific.
Also, if any place ever tries to sell you a one-size-fits-all plan, run away. Quickly.
What is life insurance?
Not the most existential question and there’s a simple answer. Life Insurance is a contractual agreement for a tax free payment of cash to your beneficiaries in the event of your death.
How much does life insurance cost?
The short answer? It depends. Things like your age, health, how much coverage you want, etc. all influence the cost. But most people 40 years and younger will spend less on life insurance than they do on Netflix.
How long should I own life insurance?
The length of time you need life insurance is kind of like the length of a string. It should be as long as needed to hold everything together. We recommend you carry coverage for as long as debt or need is relevant. Confused? Try this: If you have 15 years left on your mortgage debt, then purchase 15 year level term coverage.
What is term insurance?
Individual Term Life Insurance is just that, insurance protection for a “term” of years. You can purchase level payments for 10, 15, or 20 year guaranteed periods, as well as lifetime coverage. The premiums are guaranteed to stay the same for your selected period of time.
You also have the option to “convert” this policy to a new policy at the end of the level term and extend at a new guaranteed premium.
I have a group life insurance policy from my employer. That’s enough, right?
Most often group plans only cover a portion of need. Base plans usually offer $50,000 or “two times base salary.” That sounds like a lot, right? But most often that isn’t enough for families.
Additionally, the coverage is lumped into a group plan pricing with all employees…in good health …or bad. The pricing tends to be very expensive versus individual underwriting plans based on your own health.
A group plan coverage also typically ends when your employment ends. Owning your own policy outside of the group coverage allows you to keep security for your family due to a job loss or a career move.
When should I buy life insurance?
Short answer: Now
Longer answer: Several life events typically are points in time where life insurance becomes particularily important and relevant. Getting married, birth of a child, purchase of a new home or car, student loan payment, health issues for you or a loved one, are just a few of many events where life insurance is particurarily important.
But the truth is everyone can benefit from the additional coverage and peace of mind life insurance brings—no matter where they are in life.
TL/DR: Get life insurance ASAP.
What kind of health questions will they ask?
Questions similar to those you fill out when you go to a new physician.
What is a life insurance beneficiary?
Life Insurance contracts are between the insured and the insurance company. When an insured person passes away, the (tax-free!) payment is paid to a named beneficiary. This can be a person, group of people, or a trust.
What is a death benefit? Is it taxed?
Life Insurance death benefit is paid out tax free to the contract’s beneficiary or trust. This is the one time where death is certain, but taxes are not.
What is underwriting?
Contrary to the term, underwriting actually has very little to do with writing. Something our copywriter found out too late after accepting his first job.
Underwriting is the evaluation of your health for pricing your individual insurance contract. Startus uses a digital-based underwriting system that is crazy fast and full of complicated algorithms and lots of #sciencythings. This means the vast majority of our applicants can get covered quickly and without a health exam. Insurance coverage without talking to anyone? Sign us up!
Seriously, do I really need life insurance?
Someone as stubborn as you especially does.