Are there any policy limitations and modifications?
The initial premium is guaranteed during the first 10 years. After the initial term period, the policy may be renewed with increasing annual renewable term premiums up to age 95. Generation Life Insurance Company has the right to correct benefits for misstated age or sex. In such an event, benefits will be the amount the premium actually paid would have bought at the correct age and sex. If, within two years of the date of issue, you die by suicide, whether sane or insane, Generation Life Insurance Company liability is limited to the premium paid.
Who is your life insurance partner?
Generation Life Insurance Company is our trusted partner and your life insurance company. They don't sell directly to consumers–instead they work with a handful of carefully selected companies like Quilt to sell their policies.
Why choose a term life insurance policy?
We chose a term for a couple of reasons. It's a more affordable option than whole or permanent life insurance. And because situations change over time, so most people reassess their needs and update their life insurance policies within a decade or so.
I have life insurance through my employer. Why do I need more?
Your work policy is generally based on your income. It doesn't necessarily take into account all of your responsibilities or debts. If you have student loans, a mortgage, or want to make sure you kids can afford college, make sure your employer-provided coverage is sufficient.
How much life insurance do I need?
It depends on your situation. You should consider any immediate expenses in the event that, horrible of horribles, you die, like hospital bills, funeral costs, and estate taxes. There are also ongoing expenses to consider, like mortgages, food, tuition, student loans, and credit card debt. And in some cases there are extra expenses that arise from you not being around anymore, like childcare costs and household maintenance. That's especially true if one parent currently stays at home with the kids. Given all these factors, how much insurance you need is entirely dependent on your unique circumstances, so there's no easy answer.
What's the difference between term and permanent life insurance?
Term life is the type you're probably most familiar with. It lasts for a set amount of time, typically either 10, 20, or 30 years. If you have a term life insurance policy and die from a covered cause during that time, your beneficiaries will receive a set amount of money. Permanent life insurance is, like it sounds, permanent. It's designed to cover you throughout your entire lifetime and is also called whole life insurance. With term life, you get more protection for your money, and any savings can be set aside or used for other investment options.
Are there different types of term life insurance?
Yep. A common type is called level term life insurance. With level term, the payout remains the same from the start of the term until it expires. If you have a 10-year policy and the payment is $15 a month, you'll pay $15 a month for 10 years, and the payout is the same whether you die in year one or year 10.
Annual renewable term life insurance lasts for one year. As you age and renew coverage, the premiums usually rise. Another option is decreasing term life insurance, in which the payout decreases as you age.
Is a term life insurance payout taxable?
Nope. With term life, the payout your beneficiaries receive is usually tax-free. Talk to your tax consultant to make sure that's true for you.
What's a beneficiary?
A beneficiary is the person or people you choose to get your life insurance benefits if you die.
Who do people choose as beneficiaries?
A beneficiary is usually a spouse, partner, or relative, but it can also be a trust, charity, or your estate. Children can be beneficiaries too. Many policies handle paying benefits to minors very differently, like putting the money in a trust until they become an adult. You should talk to an attorney if you have questions.
Are there different kinds of beneficiaries?
There are two kinds of beneficiaries: primary and contingent. The primary beneficiary is the person, people, or entity who gets the life insurance benefits if you die. The contingent beneficiary (also known as a secondary beneficiary) won't get a payout if any of your primary beneficiaries are still alive when you die. Think of your contingent beneficiary or beneficiaries as the backup plan for the worst case scenario.
What do my beneficiaries get?
You decide how much your beneficiaries get in your policy. Your policy offers a choice of $100,000 and $250,000 to keep things simple.
If you decide to list more than one beneficiary, you can choose what percentage you'd like each to receive. So if you have a $250,000 policy and list your spouse and your sibling as 50/50 beneficiaries, they would each get $125,000. Or you could choose to give 80% to your spouse and 20% to your sibling. It's up to you.
What's a rider?
Riders are add-ons that change the policy in some way. They usually add different insurance coverages for an extra price and are designed to make customizing insurance coverages simpler. Rather than write individual policies for each person, standardized forms are used, with riders used to add protection in cases where it's needed.
Can my policy be cancelled?
Customers can cancel a policy anytime they like. Insurance companies generally only cancel your policy for fraud or if you stop paying your premiums. There's a grace period if you're late on payments, so depending on your state and carrier, you'll have anywhere between 30 and 90 days to pay. If you cancel, you don't get a payout and may lose a premium rate based on a younger age. Your policy will have the exact details on the grace period offered.
Will my premiums increase over the term of my policy?
Not with level term policies. So your monthly premium will be the same from beginning to end, along with the death benefit.
Do I need a medical exam?
No. You'll answer some questions on your wellness, lifestyle, background, treatments, and diagnoses.
How long does approval take?
Minutes to approve, and you'll get your documents 2-3 days after that.