Common questions
How much life insurance do I need?
A common starting point is the DIME method: add your debts, the years of income your family would need replaced, your mortgage balance and future education costs, then subtract coverage you already have and money your family could use. The calculator on this page does that math for you. It is an estimate, and a licensed agent can help you check it.
Term vs whole life insurance: which is better?
Neither is better for everyone. Term life gives the most coverage for the premium for a set number of years, and whole life costs more but lasts your whole life and builds cash value. Many families use term for the years the kids are home and the mortgage is open, and a smaller permanent policy for final costs.
Can I get life insurance without a medical exam?
Some policies don't require a medical exam, but approval and price can still depend on your answers to health questions and on records the insurance company checks. Guaranteed issue policies ask no health questions, but they have lower coverage amounts, higher premiums for the coverage and usually a two-year waiting period for the full benefit.
How much a month is a $500,000 term life insurance policy?
It depends mostly on your age, health, tobacco use and the length of the term, so the same $500,000 policy can cost very different amounts for two people. A quote with your own details is the only reliable number.
What happens when term life insurance ends?
The coverage stops, and no benefit is paid if you die after the term. Many term policies let you renew at a higher premium or convert to permanent coverage without a new exam, as long as you act before the deadline in the policy.
Is life insurance through work enough?
Often it isn't. Group coverage is often one or two times your salary, and it usually ends or changes when you leave the job. Many people keep their own policy so their coverage doesn't depend on their employer.
How does indexed universal life insurance work?
It is permanent life insurance whose cash value earns interest linked in part to a market index, subject to a cap, a participation rate and a floor the insurance company sets and can change. Your cash value is not in the market, policy charges still apply, and the policy can lapse if it is underfunded.
What is final expense insurance?
Final expense is a smaller whole life policy meant to cover funeral costs, final medical bills and small debts. Many policies ask a few health questions instead of an exam, and some pay a limited benefit in the first two years.
What does guaranteed issue life insurance mean?
It means you can't be turned down for health reasons if you are in the eligible age range. In exchange, coverage amounts are lower, premiums are higher for the coverage, and most policies pay back premiums, usually plus interest, instead of the full benefit for a death from natural causes in the first two years.
Do I need life insurance if I have no dependents?
Maybe. If someone depends on your income, shares a mortgage or debts with you, or would pay your funeral costs, life insurance can protect them.
Is whole life insurance worth it?
It can be if you need coverage for your whole life and value level premiums and cash value. If your need ends, like a mortgage or raising kids, term life usually covers more for the premium. Compare both with your own numbers before you decide.
What affects the cost of life insurance in North Carolina?
Your age, health, tobacco use, the amount of coverage, the type of policy and, for term, the length of the term. Each insurance company weighs these differently, which is why comparing more than one company can matter.
