If you have people who rely on you, financial goals to protect, or debts to manage, life
insurance can be an essential tool. It helps protect what you’ve built and supports the people
you care about when they need it most.
What is life insurance?
Life insurance is a financial safety net for your loved ones. It’s an agreement where you make
regular payments, called premiums, and in the event of your death, the insurance company
provides a lump sum payment to the people you choose.
This money can help them manage everyday expenses, pay off debts, cover funeral costs, or
continue working toward future goals. Think of it as a way to keep supporting them, even when
you’re no longer here.
How much life insurance do I need?
The right amount of life insurance depends on your income, your financial responsibilities, and
who depends on you. A common starting point is 10 to 15 times your annual income, but the
best coverage is based on your personal situation.
Think about what your loved ones would need to stay financially stable: things like living
expenses, mortgage or rent, debts, childcare, education, or even future plans. Once you add
that up, you'll have a clearer idea of the coverage that makes sense for you.
How long does it take to get life insurance?
The right amount of life insurance depends on your income, your financial responsibilities, and
who depends on you. A common starting point is 10 to 15 times your annual income, but the
best coverage is based on your personal situation.
Think about what your loved ones would need to stay financially stable: things like living
expenses, mortgage or rent, debts, childcare, education, or even future plans. Once you add
that up, you'll have a clearer idea of the coverage that makes sense for you.
Is life insurance worth it?
If you have a family, life insurance is one of the most meaningful ways to protect them. It gives
your loved ones financial support if you are no longer able to provide for them. Whether it is
covering daily expenses, paying off a mortgage, or helping your children stay in school, life
insurance gives your family the stability they need when it matters most.
However, life insurance is not only for parents or married couples. It’s for anyone who has
someone counting on them. It can protect siblings, aging parents, or even a business.
Do I even need life insurance if I’m young and healthy?
Getting life insurance can be a wise choice even if you're young and healthy. Here’s why:
Life insurance is usually more affordable when you're young and healthy. By starting early, you
can lock in a lower rate that stays with you over time. As you get older or if your health changes,
the cost may increase, since both age and health affect your rate.
Even if you don’t have a spouse or children, life insurance can be valuable if people depend on
you, like aging parents or siblings. It can also cover things like student loans, credit card debt, or
other financial obligations you may leave behind, ensuring your loved ones aren’t burdened with
them.
Do I have to get a medical exam to get life insurance?
It depends on the policy. Many life insurance options don’t require a medical exam. You may
only need to answer a few health questions so the insurer can determine your rate.
If an exam is needed, it’s usually quick and simple. It typically includes checking your height,
weight, blood pressure, and a few basic health measurements.
What is a beneficiary?
A beneficiary is the individual or group of people you choose to receive the financial payout from
your life insurance policy in the event of your passing.
Who should be your beneficiary?
Your beneficiary should be someone you trust to carry out your wishes and use the money in a
way that reflects what matters most to you. For many, this is a spouse, child, or parent, someone whose well-being you want to protect. But it could also be a sibling, a close friend, a
business partner, or even a mentor or caregiver. Some people choose to name a charity or
organization that holds personal meaning.
Can you change beneficiaries?
Yes, in most cases, you can change your beneficiaries at any time. Major life events such as
marriage, divorce, having children, or changes in your relationships may affect who you want to
receive your life insurance payout.
Updating your beneficiary is usually simple. You just need to contact your insurance company
and fill out a form. Reviewing your choices regularly is a good idea to ensure they still reflect
your wishes.
Can you have multiple beneficiaries?
Yes, you can name more than one beneficiary. You can also choose how to split the benefit
between them, ensuring each person receives a portion of the payout. Whether it’s two people
or ten, you’re in control.
How long will I need the policy?
The length of your policy depends on your goals and what you want the coverage to do. If you
want to protect your family while paying off a mortgage, raising children, or managing other
major financial responsibilities, you may only need coverage for 10 to 30 years.
A permanent policy might be a better fit if you want lifelong protection with added features.
How do I pick the right policy?
Consider your budget, long-term goals, and who you want to protect. If you're unsure where to
start, talking to a licensed agent at Ozzo can help you find a policy that fits your life, not just
your numbers.
What affects my life insurance rate?
Several factors influence your premium, including age, health, smoking status, occupation,
lifestyle, family medical history, and the coverage amount you choose. Generally, younger and
healthier individuals pay lower premiums.
Some insurers also consider factors like driving history and participation in high-risk activities
when determining your rate.
Is there a limit to how much life insurance I can get?
Yes, but the limit depends on your personal situation. Insurers look at your income, age, health,
and financial responsibilities to decide how much coverage you qualify for. The idea is to match
the amount of insurance to what your loved ones would actually need if you weren’t here.
Generally, younger, healthier people with higher incomes can qualify for more coverage. If
you're unsure how much you may be eligible for, an agent at Ozzo can help you estimate the
right amount based on your current life and future goals.
Can I get a life insurance plan for my parents or spouse?
Yes, you can, as long as you have their consent and insurable interest. This means you would
be financially affected by their passing. For a spouse, this is usually clear. For a parent, you may
need to show that you help support them or would take on expenses like medical bills or funeral
costs.
They will need to be involved in the application, which may include answering health questions
or completing a medical exam. Once approved, you can own the policy, pay the premiums, and
name yourself or someone else as the beneficiary.
Can I name my child as a beneficiary?
Yes, you can name your child as a beneficiary. However, if they are under 18, the insurance
company cannot pay the full benefit directly to them. In most cases, you’ll need to set up a
trusted adult, legal guardian, or a financial arrangement like a trust to manage the money until
your child is of legal age.
What’s the difference between a primary and contingent beneficiary?
A primary beneficiary is the first in line to receive the death benefit. A contingent beneficiary
receives the benefit only if the primary beneficiary has departed or is unable to claim it.
What is the cash value of a whole-life policy?
The cash value is a savings feature that grows within a whole life insurance policy. As you pay
your premiums, part of that money is set aside and builds value over time at a fixed rate.
You can borrow from it, use it to pay premiums, or make a withdrawal. Just keep in mind that
accessing the cash value may reduce the payout your loved ones receive. Many people choose
whole life insurance for this added financial flexibility and lifelong protection.
