Frequently Asked Questions

How do I know which type of policy I need?
Review your own life insurance needs and circumstances. Choose the kind of policy that has benefits that most closely fit your needs. Ask an agent or company to help you. Learn about the different types of insurance through our Life Insurance Guide and make an informed decision. If you are still uncertain, have an agent explain each policy in detail and evaluate your needs and give you a recommendation.
Should I buy more coverage than I need?
Be sure that you can handle premium payments. Can you afford the initial premium? If the premium increases later and you still need insurance, can you still afford it? If so, you can purchase additional coverage.
What if my needs change?
Review your life insurance program with your agent or company every few years to keep up with changes in your income and your needs.
How quickly does the cash value grow?
Some policies have low cash values in the early years that build quickly later on. Other policies have a more level cash value buildup. A year-by-year display of values and benefits can be very helpful. (The agent or company will give you a policy summary or an illustration that will show benefits and premiums for selected years.)
How are nonguaranteed values calculated?
For example, interest rates are important in determining policy returns. In some companies, increases reflect the average interest earnings on all of that company's policies regardless of when issued. In others, the return for policies issued in a recent year, or a group of years, reflects the interest earnings on that group of policies; in this case, amounts paid are likely to change more rapidly when interest rates change.