Curtis Insurance, Serving Southwest Louisiana since 1973
Life Insurance FAQ
Q: What types of Insurance does Curtis Insurance Agency offer? A: Auto, RV, Motorcycle, Home, Life, Medicare plans
Q:What is the difference between Life and Burial insurance? A: Life and Burial Insurance are at their core, the same. A ‘burial’ policy will usually contain nominal coverage (just enough to pay funeral expenses) whereas ‘life’ policies are normally sold with a higher face value and have other benefits attached. Burial insurance does not expire whereas life insurance does. With enough life insurance, an additional burial policy would not be necessary.
Q:When does my life insurance policy expire? A: Most life policies cover the insured until age 100 at which time it endows, or matures, making the benefit payable at that time.
Q: What does endow mean? A: If a person who has maintained a “whole life” policy reaches age 100, that policy matures (or endows) and the insured receives the total cash benefits available (usually up to the face amount of the policy).
Q: What is the difference in Whole and Term Life insurance? A: Under most circumstances, Whole life policies maintain their face and premium amounts throughout the life of the policy (until the insured reaches a certain age – usually 100). Term insurance covers the insured for a certain amount of money, and a limited number of years (1, 5, 10, 20, etc.) Term policies may be renewed, but at a higher rate. Whole life policies also build cash value whereas Term insurance does not. Also, the cost of whole life policies do not increase with age.
Q: What is the difference between level term and decreasing term? A: Level term means the face amount and premiums of the policy remain the same throughout the selected policy period (5, 10, 20 years) whereas in a decreasing term, the face amount goes down incrementally as the need for insurances decreases, as in covering a mortgage, however, the premium stays the same.
Q: My mortgage company suggested I have Credit Life insurance coverage, what is that? A: Credit Life and/or Credit Life with Disability insurance is normally offered by banks and mortgage/finance companies to cover a loan. Which means, the loan would be paid (or paid off) in the instance of death or disability of the primary borrower. CL/D is an example of decreasing term insurance. This is usually the most convenient way of acquiring coverage for the duration of the loan.
Q: My spouse has been refused a policy due to health, is there any way I can get him/her covered? A: If you have a Whole Life policy you may be able to insure your spouse with a “spouse term rider” which offers limited benefits on him/her. Also, many companies offer a “guaranteed issue” policy for people with health issues, which contains a 2 or 3 year waiting period before the full benefit amount is available.
Q: What about my children, are they covered under my policy? A: No one likes to think of burying their child. Tragically, many do. Having insurance helps to prevent a financial burden in this instance. A “child term rider” is usually offered in conjunction with a whole life policy and covers the child until he/she reaches a certain age (normally 21 – 26). However, it is always wise to buy your children their own whole life policies as infants. These cost pennies a day, last the lifetime of the child, and usually have cash value and other benefits attached.
Q: The average funeral costs $10,000 why do I need more life insurance than that? A: Life insurance is for the living. In other words, most folks carry enough “life” insurance so their family members have time to recover and adjust to their death. Life insurance benefits can be used to pay (or pay off) bills, cover monthly expenses, finance education of the surviving spouse or children so that they can manage without the income of the insured-at least for a while. This is advisable for continuing family expenses after the death of a household “bread winner.”
Q: My agent suggested I carry 3 – 5 times my annual salary in life insurance. I can’t afford that! A: In that case, consider a whole life policy in the amount of your annual salary and level term coverage to make up the difference. This increases protection at a lower cost for a period of time when budget considerations make it necessary.