Q: How much insurance do I need?
A: Everyone is different, but an advisor will help you come up with a suitable amount based on your debt, income, number of dependants, etc
Q: Valley Life Insurance Solutions is a “broker”. What does that mean??
A: A broker can place business with several companies. We do the shopping for you.
Q: What is Whole Life Insurance?
A: Whole Life Insurance is permanent. Think of it as “owning” insurance. It never expires, the premiums are set at the time you purchase it and can be payable for life or for a set period of time, after which the policy is paid for. They typically increase in value and can be “cashed in” or borrowed against.
Q: I smoke a colt once in a while at poker game or around a campfire. Does that mean I’m a smoker?
A: That depends on the company you apply to. (see broker question above) Currently one company considers that a non-smoker, everyone else charges smoker rates.
Q: How much more does it cost as a smoker?
A: Typically smokers pay almost double as non-smokers.
Q: Can a smokers rating be removed if I quit?
A: Yes, most companies will remove a smokers rating if you have been quit for 12 months or more and are still in good health.
Q: My neighbor put life insurance on their baby. Isn’t that a bit weird? Life insurance on a baby??
A: Juvenile insurance is more about getting a child’s “insurability” secured, as opposed to a death benefit on a toddler. Babies have almost no health problems, don’t have to answer more than 6 health questions on an application, don’t smoke, drink, or have dangerous jobs. Basically it’s easier to get them insured now, as opposed to waiting until they have a bunch of bad habits and health problems as adults. It’s also much cheaper.
Q: What does it cost to talk to an advisor?
A: A consultation and review is free. If you purchase a policy, your broker receives a commission from the insurance company, just like your house or car insurance.
Q: I have a business partner. Do I need to insure them?
A: That depends on whether you want to be in business with his or her spouse or children if they pass away. In most cases the life insurance is far cheaper than buyouts, or lengthy court battles.
Q: How are life insurance proceeds taxed
A: Typically, your beneficiary receives the proceeds tax free.
Q: Can I name anyone as a beneficiary?
A: Yes, you can name any beneficiary you choose, and the designation of that person cannot be contested by anyone.
Q: Can I change beneficiaries?
A: Yes, many people change beneficiaries or add beneficiaries. Marriage, divorce, and birth of children are typical
Q: What if an insurance company gets into financial trouble? Banks and credit unions have deposit insurance. Is there such a thing as insurance on insurance companies?
A: Yes, It’s called Assuris, and it is basically insurance for insurance companies; similar to deposit insurance at other financial institutions.
Q: Can ValleyLife insurance Solutions inc. also insure my house and provide liability coverage for my business?
A: No. ValleyLife only insures people. If you need a property and casualty policy, you need to see a general insurance broker. Hatton Insurance is a great one, and I would recommend giving them a call if you need a property and casualty policy.
This is obviously just a quick reference section. For more detailed information, please feel free to contact us. We love to help.Let’s Get Started