Life insurance FAQ

Understanding your long-term financial goals is crucial before applying for life insurance. Familiarize yourself with the different types of policies available—such as term life, whole life, and universal life insurance—and consider how much coverage you will need to secure your family’s future effectively. Review your current financial responsibilities, future obligations, and the standard of living you wish to maintain for your dependents. Our Tools & Calculators can help, as well as guidance from our licensed agents.

Start by exploring your options and getting a free quote. Once you choose the policy that’s right for you, you can complete your application online or over the phone with the guidance of our licensed agents. The process is streamlined and designed to be as simple as possible for our customers.

The application process duration can vary. A simple term life insurance policy may take only a few days to process, whereas a whole life insurance policy requiring a comprehensive medical exam may take several weeks. Our team works to minimize any delays and communicate with you every step of the way.

If you’ve made a mistake on your application, please contact our customer service immediately. We can assist you in making the necessary corrections to ensure that your policy reflects your information.

Qualification for life insurance depends on several factors, including your age, health condition, lifestyle, and the type of life insurance you are applying for. During the application process, you may be asked to provide medical history and undergo a physical examination to determine your eligibility.

Being turned down for life insurance can be disappointing, but it’s not the end of the road. We’ll provide you with the specific reasons for the denial and discuss alternative solutions or options that might be more suited to your current situation.

In the context of insurance, approval means your application has been reviewed and accepted by the insurer. Once approved, your policy becomes active after your first premium payment has been processed, thereby starting your coverage.

A life insurance beneficiary is the individual or entity designated to receive the death benefit from your policy in the event of your death. You can name one or more beneficiaries and specify how the proceeds should be divided among them. It’s important to keep your beneficiary information updated and current.

Yes, you can name multiple beneficiaries for your life insurance policy. You can also specify the percentage of the death benefit each beneficiary will receive, which provides flexibility in how your assets are distributed.

No, not all life insurance policies have cash value. Cash value is a feature typically found in permanent life insurance policies like whole life or universal life. This feature allows you to accumulate savings over time on a tax-deferred basis, which can be borrowed against or withdrawn under certain conditions. Please note: Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal penalty. Loans will reduce your net cash value and net death benefit and may be subject to interest charges. Unpaid loans are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty.

Cash value in a life insurance policy typically builds over time, starting slowly and increasing as the policy matures. The growth rate depends on the type of policy you have and the policy’s terms. For whole life policies, cash value growth is guaranteed, whereas, for universal life policies, the growth can vary based on the underlying investments. Please note: Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal penalty. Loans will reduce your net cash value and net death benefit and may be subject to interest charges. Unpaid loans are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty.

Yes, policies with a cash value component allow you to borrow against the policy or withdraw a portion of the cash value. Keep in mind: Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal penalty. Loans will reduce your net cash value and net death benefit and may be subject to interest charges. Unpaid loans are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty.

Replacing an existing life insurance policy with a new one from SBLI can be a sensible decision if your needs have changed. However, it’s important to carefully consider the benefits and potential drawbacks, such as the surrender charges on your old policy and the start of new contestability periods on the new policy. Keep in mind, our licensed agents are here to help provide guidance and answer your questions.

The cost of life insurance varies based on several factors including the type of policy, the amount of coverage, your age, health, and lifestyle. Term life insurance is generally less expensive than permanent life insurance and provides coverage for a specific period of time.

To secure the best rates, maintain a healthy lifestyle, manage chronic conditions effectively, avoid smoking, and choose a policy term and coverage amount that aligns with your financial needs. Comparing quotes and consulting with insurance professionals can also help you find the best rates.

The amount of life insurance you need depends on several factors, including your current income, your financial obligations, your family’s lifestyle needs, and your future goals like education costs for children or retirement plans for your spouse. A general rule of thumb is to have a policy that covers 10-15 times your annual income. Our Tools & Calculators can help, as well as guidance from our licensed agents.

Life insurance provides financial security to your beneficiaries upon your death. It can cover funeral expenses, debts, mortgage costs, and provide an income replacement for your dependents. Additionally, some policies include riders that offer benefits like accelerated death benefits in case of critical illness.

While employer-provided life insurance is a valuable benefit, it often provides coverage that is only a multiple of your annual salary and may not meet all your needs. Additionally, coverage typically ends when you leave the job. Consider obtaining additional life insurance to ensure comprehensive coverage.

Yes, you can own multiple life insurance policies from different insurers or different types of policies from the same insurer. This strategy can help address various financial needs at different stages of your life.

During the application process, you will be asked about your medical history, current health conditions, family health history, and lifestyle choices such as tobacco use, alcohol consumption, and engagement in high-risk activities. These factors help insurers assess your risk and determine your premiums.