Frequently Asked Questions (FAQs)
Frequently Asked Questions (FAQs)
What is life insurance?
Life insurance is a contract where an insurer guarantees a sum of money to beneficiaries upon the insured person’s death. The death benefit can be used to cover funeral expenses, outstanding debts, and other expenses.
Why do I need life insurance?
Life insurance is important if you have loved ones who rely on your income to cover their living expenses. It provides financial support to your beneficiaries in the event of your unexpected death, ensuring that they are taken care of and able to maintain their quality of life.
How much does life insurance cost?
The cost of life insurance depends on a variety of factors, including your age, health, occupation, and the type and amount of coverage you choose. Term life insurance is generally less expensive than permanent life insurance.
What are the types of life insurance?
The main types are term life insurance (temporary coverage) and permanent life insurance (covers you for life).
What is term life insurance?
Term life insurance offers coverage for a specific period (term), providing a payout if you die during that time.
What is permanent life insurance?
Permanent life insurance offers coverage throughout your lifetime and often includes a cash value component.
What is a beneficiary?
A beneficiary is the person or entity you designate to receive the insurance payout upon your death.
How much life insurance do I need?
Coverage amount depends on factors like your financial obligations, debts, and income replacement needs. A common rule of thumb is to have coverage that is at least 10-12 times your annual income. However, everyone’s needs are different and we recommend that you use a tool like our Ultimate Life Insurance Calculator or work with a reputable agent to evaluate your specific needs.
How do premiums work?
Premiums are the payments you make to the insurer. They can be paid monthly, annually, or in other intervals, depending on your policy.
Can I change my coverage amount?
Yes, most life insurance policies are flexible and can be changed as your needs change. You can typically increase or decrease your coverage, change your beneficiaries, or add riders to your policy.
What affects my premium rates?
Every insurer has their own approach, but typically factors like age, health, lifestyle, occupation, product type and coverage amount impact your premium rates.
Is a medical exam required?
It depends on the type of policy and the coverage amount. Fewer than 10% of our applications end up requiring a medical exam, and it usually relates to higher coverage amounts.
Can I have multiple life insurance policies?
Yes, you can have multiple policies from different insurers or the same one, depending on your needs.
Can I borrow from my life insurance policy?
Permanent life insurance policies often have a cash value component you can borrow against, but it can affect the death benefit.
How do beneficiaries claim the death benefit?
Beneficiaries need to notify the insurance company, complete a claim form, and provide a death certificate to receive the payout.
When was Everyday Life Insurance established?
We were founded in 2018 and began operations in 2019.
How long does it take to get coverage with Everyday Life Insurance?
It typically takes around 2-3 minutes to get matched with a policy, and around 10 more minutes to get coverage. It may take longer, depending on your location and circumstances. Explore our How It Works page to find out how long it might take to get your personalized coverage.