Life Insurance FAQs

Read through our term life insurance questions and answers to help you make an educated decision when it comes to purchasing a life insurance policy.

Life insurance comes in many shapes and sizes, but the different types of life insurance policies generally fall into two categories: term life insurance and permanent life insurance.

The type of life insurance you should buy depends on your personal situation and financial goals.

Learn more about the types of life insurance.

Life insurance experts suggest buying a life insurance policy that is 10 to 20 times your annual salary, but your annual salary isn’t the only important factor in determining your life insurance needs. You also need to consider how much money your family will need to cover final expenses, and current and future financial obligations, such as the mortgage, college tuition, etc.
Financial rating companies such as A.M. Best, Standard & Poor’s, Moody’s and Fitch, regularly evaluate the long-term financial strength of life insurance companies across the country. These financial rating companies review each life insurance company’s financial balance sheets, business profiles and overall operating performance. The ultimate goal is to determine whether a life insurance company is in a secure financial situation or a vulnerable one.

A life insurance company in a secure financial situation will have a better rating. Alternatively, a life insurance company in a vulnerable financial situation has a higher risk of defaulting on its payout obligations; leaving your loved ones unprotected.

The rating system is simple. Financial rating companies appoint letter grades to each life insurance company based in its individual financial situation and performance level; similar to how grades are distributed in schools. For example, the best life insurance companies have an A+ rating and the more vulnerable ones have a rating below a B+.

1st Option Insurance only represents the top one percent of life insurance companies with ratings of A- or better.

Temporary life insurance provides you with coverage during the life insurance application/underwriting process. Most life insurance companies give you the option of obtaining temporary coverage by remitting the first month’s premium payment with your application. This will ensure that your loved ones are financially protected if you die before your policy is issued.

Keep in mind that obtaining temporary life insurance coverage is not a requirement by life insurance companies, but highly recommended.

Also, you’re guaranteed a full refund of your first premium payment up to 10 days after receiving you term life insurance policy. So, there’s nothing risky about opting for temporary coverage. It may be a bigger risk not to get it.

Most families have coverage on both husband and wife. There are many financial pressures on a family after the loss of either parent. Beyond the obvious final expenses, the financial strain on a family after the loss of a spouse can be significant, even if the deceased spouse wasn’t working.

Often the surviving spouse will take time off work, or change jobs in order to spend more time with the children. Therefore, your overall financial plan should include life insurance for both spouses/parents.

We know how difficult of a time a family member’s death can be. Our promise to you is that we will be there every step of the way if you should ever have to collect on your loved one’s life insurance policy.

We encourage you to reach out to us. We will help:

  • Explain the claims process.
  • Provide carrier contact information for filing a claim.
  • Offer guidance on proceed distribution options.
  • Create a lifetime income stream from the death benefit, designed to protect present and future needs.

In addition, we have prepared a very useful checklist of things that need to be done when someone dies to help make the process as smooth and hassle free as possible. Take the time to read through it now so that you are prepared if the time ever comes to file a death claim. You may also want to print it and place it with your life insurance policy.

There are many life insurance quoting and brokerage firms out there, but none of them offer the same quality service that 1st Option Insurance provides.

Like our competitors, we provide low cost term life insurance quotes online. These quotes represent the life insurance rates from the top one percent of life insurance carriers.

What makes us unique is that unlike our competitors, we are NOT a one and done quoting calculator. We provide our customers with:

  • Extraordinary, personalized customer service. Just ask our hundreds of thousands of customers.
  • Faster than average policy delivery
  • Insurance advice and solutions for the whole family
  • A commitment to provide our expertise throughout your lifetime

In addition, 1st Option Insurance offers an array of other financial products that should be a part of every family’s overall financial plan.

There are four great reasons to shop online for life insurance.

Convenience – Shopping for life insurance has never been more convenient. You get the information and advice you need from the comfort of your own home at any time throughout the day.

Speed – The process of shopping online for life insurance usually takes no longer than five minutes. After briefly talking to a licensed life insurance agent, like the ones at 1st Option Insurance, a personalized life insurance quote is generated and the application process begins.

Savings – Online life insurance quoting and brokerage firms allow you to compare dozens of quotes side-by-side, finding the best values in life insurance.

Experience – There’s no substitute for experience. Online life insurance agents talk to thousands of very different customers every year. They have the proven track record to help you and know the caveats of each life insurance carrier.

The bottom line is simple. Using the internet as a tool to find and obtain the best values in life insurance saves time and money.