Question 1

How much life insurance do I need?

Accepted Answer

A common rule is 10-12x your annual income, but your specific needs depend on debts, dependents, and financial goals. Use our life insurance calculator for a personalized estimate.

Question 2

What is the difference between term and whole life insurance?

Accepted Answer

Term life covers you for a specific period (10-30 years) at lower cost. Whole life covers your entire life and builds cash value but costs significantly more. Most people are best served by term life with the difference invested elsewhere.

Question 3

Can I have multiple life insurance policies?

Accepted Answer

Yes, you can have multiple policies from different companies. Many people combine employer-provided group life with an individual policy for complete coverage.

Question 4

Does life insurance pay out for suicide?

Accepted Answer

Most policies pay out after the first 2 years. If suicide occurs within the first 2 years, the policy typically refunds premiums paid rather than paying the death benefit.

Question 5

Is life insurance taxable?

Accepted Answer

Life insurance death benefits are generally income tax-free for beneficiaries. However, if the policy has investment components or is part of an estate, there may be estate tax implications.

Question 6

Can I change my life insurance beneficiary?

Accepted Answer

Yes, you can change your beneficiary at any time unless you have an irrevocable beneficiary designation (common in divorce settlements). Contact your insurance company to update.

Life Insurance FAQ — FAQ

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