Life insurance can provide financial protection for your loved ones if you pass away unexpectedly. Without it, your family could be responsible for unexpected costs associated with your passing, such as estate administration fees and funeral expenses. Contact Gray Insurance Group Inc. in Bel Aire, Maryland, to learn more about our life insurance policies.  

What Is Life Insurance? 

Your life insurance policy is a binding agreement between you and your insurance company. If you pass away while your policy is active, your insurance company is obligated to provide a death benefit to your chosen beneficiaries. The duration of your life insurance coverage will vary with the type of policy you choose.  

Types of Life Insurance 

If you want coverage for the duration of your life, permanent life insurance could be the right policy for you. Also known as universal life insurance or whole life insurance, this type of policy may have a level premium. This means your insurance costs will remain the same, even when you’re older and need more coverage. Depending on your insurer, you may also be able to accrue wealth by withdrawing or borrowing against your permanent life insurance policy. 

A less expensive coverage option is term life insurance. This type of policy can provide coverage for a set period, such as 10 or 20 years. At the end of your term, your insurer will no longer provide a death benefit when you die.  

The agents at Gray Insurance Group can help find the best policy for you. Contact us today to speak to an insurance agent.  

How Much Life Insurance Should I Have? 

Life insurance is not mandated, but it’s recommended if you have financial burdens (e.g., mortgage, loans) that could fall on your loved ones when you pass away. You may want to get enough coverage to replace your annual salary, replace services you provide and help pay for future family expenses (e.g., college tuition). Every person’s situation is unique. Work with a life insurance agent to determine an appropriate amount of coverage to purchase. 

How Many Life Insurance Policies Can I Have? 

Legally, there’s no limit to the number of life insurance policies you can buy. If you’ve recently experienced a major life change event, such as having a child or starting a new business, you may want to consider the benefits of buying a second life insurance policy for additional coverage. 

How Far Back In My History Do Life Insurance Companies Look? 

When you apply for life insurance, your insurance company will generally use your medical history and previous life insurance applications to determine whether to accept or deny your application and how much your life insurance should cost. Insurance companies may have different policies regarding how far back into your medical history they look, but in some cases (e.g., prescription medication record), it could be several years.  

How Do I Buy Life Insurance? 

We’re here to help you find the life insurance policy you need. Contact Gray Insurance Group to get a free life insurance quote today.