Frequently Asked Question - Life

Who needs life insurance?

Life insurance is appropriate if you have dependents relying on your income or services. Married couples should strongly consider life insurance, and almost all parents with dependent children will need this valuable protection.

How much coverage should I have?

Financial experts often suggest 5 to 10 times your annual earnings. This would provide your family with sufficient funds to last for several years. The amount of coverage you need depends on a number of factors specific to your family: number of dependents, other assets, mortgage and other debts, benefits through work, etc. We can help you determine the appropriate amount of coverage for you and your family.

What's the difference between "term insurance" and "whole life"?

As the name implies, "term insurance" provides protection for a specified term, usually 10 to 20 years. Because it is relatively low-cost, term insurance works best for young families who need substantial amounts of insurance at the lowest possible cost. Term insurance has no accumulating cash value, and the premium usually is guaranteed for the term of the policy.

"Whole life" is much more expensive because it provides a build-up of cash value in addition to the life benefit. The concept is that the premium will remain steady throughout your life, giving you permanent protection. The proposals are rather complex, with various guarantees and assumptions regarding insurance costs and interest rates that affect the cash value and length the policy will remain in effect.