Life Insurance Quotes FAQ

 Q: Can more then one insurance policy be purchased?

A: It is becoming common practice today to have supplemental life insurance policies in order to pay for the rising costs for medical bills and funeral arrangement costs. These supplemental policies might be viewed as excessive; this is not always true, but in any case it is up the person or persons that the policies cover. Insurance companies that provide supplemental insurance may ask for a medical exam to prove that there are no existing medical conditions. This is a standard procedure, and it allows an insurance company to protect its interests.

 Q: What are the different types of whole life insurance?

A: There are three basic types of whole life insurance: traditional, universal, and variable. With traditional plans, the insured individual pays set premiums throughout his or her life until death, then the balance of the policy is paid to the policy’s beneficiaries. Universal plans are characterized by flexible premiums that fluctuate through the lifetime of the policy holder. Variable plans have regular premiums, much like a traditional plan, but flexible investing options. There are several variations on these basic three plan types, including plans that can be bought with a lump sum premium payment.

 Q: What is the difference between term life and whole life insurance?

A: Term life insurance is where the insurance company pays if the insured individual dies during the time period of the policy. Whole life insurance pays whenever the insured individual dies. Those that are younger generally purchase whole life insurance because they generally have a longer life expectancy when they purchase the policy. However, older individuals that purchase a life insurance policy generally purchase a term policy.