FAQ's on Life Insurance

Q: Employer-provided life insurance is a great perk, but it usually isn’t enough.

Most workplace policies only cover one or two times your salary—which often won’t go far in protecting your family if something happens to you.

Worse, that coverage typically ends if you change jobs, retire, or get laid off. With a personal policy, your protection stays with you, no matter where life takes you.

An individual policy also gives you more control. You choose the coverage amount, the term length, and the beneficiary. And if you’re healthy, it’s surprisingly affordable—many policies cost less than $1 a day.

Bottom line: your own life insurance gives you reliable, long-term peace of mind. Use what your employer offers, but don’t rely on it alone.

 

Q: How Much Life Insurance Should I Get?

A common guideline recommended by most financial planners—including Dave Ramsey—is to carry 10 to 12 times your annual income in life insurance coverage. This ensures your family is financially protected in the long run, covering major expenses like income replacement, mortgage payments, education, and debt.

But there’s no one-size-fits-all solution. The right amount of coverage depends on your budget, your financial goals, and the needs of your loved ones. The best policy is one you can afford, feel confident maintaining, and that offers real peace of mind.

During your policy review, we’ll help you evaluate whether your current coverage is enough—and whether it includes newer features, like living benefits that can provide financial support in the event of a serious illness or injury. With recent changes in the market, many term life policies now offer more value than ever before.

Ready to make sure your coverage is working for you? Schedule a personalized review today, and let us help you find a policy that truly protects what matters most.

 

Q: What’s the difference between term life and whole life insurance?

A: Term life insurance is simple, affordable coverage that lasts for a set period—typically 10, 20, or 30 years. It’s designed to protect your family during your working years while you pay off debt and build wealth.

Whole life insurance, on the other hand, is permanent and includes a cash value component that grows over time. But it comes with much higher premiums and often confusing terms. Dave Ramsey advises against whole life because the returns are low, and if you pass away without using the cash value, the insurance company keeps it—not your family.

 

Q: Which one should I choose—term or whole life?

A: For most people, term life insurance is the smartest choice. It’s affordable, easy to understand, and gives you the coverage you need during the years your family relies on your income. Dave Ramsey consistently recommends term life as the best way to protect your loved ones without overpaying for extra features you don’t need. Whole life is rarely worth the cost unless you have very specific financial goals and have already maxed out other investment options.

 

Q: Is whole life insurance a good investment?

A: Not really. Whole life insurance grows cash value slowly and costs significantly more than term life. Dave Ramsey is clear: life insurance is not an investment. If you’re looking to build wealth, focus on real investments—like mutual funds or real estate—not expensive insurance policies.

 

Q: Can I convert my term policy to whole life later on?

A: Some term policies offer a conversion option, but it’s rarely necessary. If you’re following a plan to pay off debt, build an emergency fund, and invest wisely, you likely won’t need life insurance after your term ends. That’s the goal—to become self-insured as your wealth grows.

 

Q: How do I get a quote?

A: Getting a quote is easy. Just contact us and we’ll walk you through your options, answer your questions, and help you find the right coverage. No pressure—just sound advice to help you protect your family and work toward financial peace.

 

Q: How often should I review my life insurance policy?

A: We recommend reviewing your policy every 3 years, or sooner if you experience a major life change—like getting married, having a baby, buying a home, or changing jobs. Life insurance should grow and shift with you. A quick review ensures you’re still properly protected and getting the most value for your money.