Have your insurance needs changed?

Q. I’ve never given much thought to life insurance. How can I tell if I need it, and how will it help my loved ones?

A. If someone will be impacted financially when you die, you may need life insurance. Life insurance helps pay a cash benefit to your family after your death. This death benefit can help your family meet many important financial obligations like funeral costs, final medical bills, daily living expenses and outstanding debt. Plus, there is currently no federal income tax on life insurance benefits. (In some cases, estate or inheritance taxes may apply.)

How much you need depends on your situation. Consider what you want to leave for your loved ones. Do you want to help make sure funeral bills and other final expenses are paid? Or, maybe you’d like to designate something for grandchildren, a special relative or friend, care for your pet or a charity.

Q. Are there options for me if I need life insurance only to take care of funeral expenses — and if I prefer not to go through a long, complicated underwriting process?

A. Yes. Guaranteed acceptance life insurance policies are popular for several reasons. If you’re concerned about paying for your funeral, settling debts and handling other obligations that would come into play for your loved ones when you pass away, this type of insurance policy could be a good option for you.

With the national average cost of a funeral with burial at $9,995 according to the National Funeral Directors Association¹, a person who wants to buy life insurance to cover the cost of their funeral might find one of these types of insurance policies to be just what they’re looking for.

And, since they are guaranteed issue, there are no health questions to answer to get coverage. It’s usually as simple as completing an application and sending in the first premium.

Q. Is it easy to buy life insurance online?

A. In addition to traditional ways to buy life insurance (on the phone, from an agent, or by replying to a mail offer), many life insurance companies have also enhanced their online presence. Several now offer an easy application process through their website in which you can buy the life insurance that best meets your needs — including a guaranteed issue life insurance product.

And, with many companies, the products are available at the same price regardless of the buying method you choose — online, on the phone, through your trusted agent, or through the mail. The choice is yours.

Q. Before I buy life insurance, what should I know about the company?

A.

• What are the company’s ratings through independent ratings companies, such as A.M. Best and Weiss Ratings? Good financial strength ratings indicate a company’s ability to pay claims.
• Customer satisfaction rating? Customer service representatives should be helpful, making your interaction with the company as easy for you as possible.
• How fast do they pay claims? Often, money is needed quickly to pay bills, so it’s important to get the benefits right away.
• What is the company’s history? How long has it been in business? What’s its reputation? A company’s longevity and stability are excellent indicators that you can count on the company to fulfill its obligations to you and your family. And a company that cares about and gives back to the community is another indicator of how it will care about you.