Frequently Asked Questions

 A life insurance policy is very simply a contract between you and an insurance company. In that contract, you agree to make regularly scheduled premium payments in exchange for a death benefit if you die while the policy is in force. The policy can be in force for a specific number of years or the duration of your life.

 Personal finance experts recommend that you have savings and/or coverage that are at least ten times your annual salary, if not more. If you have already built up enough savings to provide that safety net on your own, then you may not need life insurance. If your savings falls a bit short, getting a term or guaranteed issue whole life insurance policy can help protect your family’s future.

 Life insurance rates increase as you age, so the sooner you get it, the lower your premium will likely be. Applying soon means you can lock in your lowest rate. Owning life insurance is important if you have just purchased a home and need to cover the mortgage, if you've recently had a baby or have plans to in the future, or if you would like to provide income replacement for your family in the event of your untimely death. 

 You can quickly get a quote on our site by answering a few basic questions about yourself to get an idea of how much your monthly premiums could be. However, this is an estimate based on the information you provide. When you submit your application, underwriters review your detailed information and calculate the actual cost of insuring you. Your ultimate cost is based on a number of factors, including the term length you select, your medical history, health, age, and lifestyle. Other factors that may affect your price include your driving record, criminal record, credit score, occupation, and any risky hobbies you may have. 

 It’s different for everyone. In general, you can find your ideal coverage amount by calculating your long-term financial obligations and then subtracting your assets. The remainder is the gap that life insurance needs to fill.  There also are a few rules of thumb that can help guide you. One easy way is to multiply your annual income by 10.

 Employer-sponsored life insurance is a great benefit, but it may not provide enough coverage to protect your family. Most employer-sponsored policies offer coverage that is the equivalent of 1 to 2 times your annual salary. So if you make $50,000 per year, your employer may offer $100,000 in life insurance coverage at minimal cost to you. While this is helpful, your family would likely need much more support in the event of your death.   Another issue with relying on employer-sponsored coverage is that many policies through work only last as long as you are employed there. Many people tend to lose their insurance coverage when they change jobs, are laid off, or when they retire.  

Life insurance is a way of helping your family cope financially when you die. The payout can be used to help your loved ones with everyday expenses when they can't rely on your salary or income any longer. So the question of what life insurance covers can be answered two ways: the expenses it covers, and the types of death it covers.

• Expenses covered by life insurance
  • Typically, life insurance policy proceeds are used to help cover expenses like home mortgages, funeral expenses, children’s college tuition, existing debt, child care or dependent care, medical bills, living expenses, cosigned debt, or any other expenses your loved ones may have. However, it’s ultimately up to your beneficiary (or beneficiaries) to decide how to use the policy proceeds.
• Types of death covered by life insurance
  • While each policy can be a little different, most life insurance policies cover deaths caused by accidents and natural illnesses. The majority of policies will not pay policy proceeds for a death resulting from suicide during the first two policy years. Also excluded are policies where statements have been falsified by the applicant as described in the incontestability provision of the policy (meaning they lied on the application). The incontestability period is regulated by state, but the typical timeframe is 2 years. Policy proceeds will not be paid if insurance fraud has been committed. Some policies may have additional limitations or exclusions related to the benefits paid, like death as a result of war, aviation, or certain avocation.

 After you submit an application, underwriting begins. Underwriting is the process life insurance companies use to determine whether they are able to offer life insurance coverage to applicants, and the premiums they charge. Factors including an applicant’s age, sex, health, lifestyle, contribute to the life insurance company’s decision. 

There are two main types of life insurance: term life insurance and permanent life insurance.

Term life insurance is typically the more simple and affordable option. It provides coverage for a set period of time or “term,” typically 10-30 years, and is designed to protect your dependents during your income-earning years. If you pass away during the term period, your beneficiaries will receive a lump-sum payment of the policy proceeds.

Permanent life insurance, which includes whole life insurance, provides coverage for your entire life. Some permanent life insurance policies let you access cash value with a policy loan, a withdrawal, or a partial surrender from the policy. Withdrawals, partial surrenders, and outstanding loans will usually reduce the amount paid to beneficiaries.

At PIA, our goal is to ensure and protect as many families as possible. Offering term and guaranteed issue whole life insurance lets us do just that.

Term life insurance might be right for you, particularly if:

• You need coverage to replace your income over a fixed period of time (like when you’re raising children or paying off a mortgage)
• You want the most affordable coverage which provides insurance for a specific period of time (like while you are working and saving for retirement)
• You want a streamlined and straightforward process to quickly provide your family with protection when they need it most (like while you are a wage earner, covering household expenses)

Guaranteed issue whole life insurance might be right for you, particularly if:

• You’re between the ages of 65 and 85
• You want a simple process without medical exams or lab tests
• You thought you couldn’t get life insurance because of your age or health
• You want your policy to build cash value
• You want coverage for the rest of your life
• You don’t want your family to have to worry about your final expenses
• You’re willing to pay a higher premium for the unique benefits of this coverage

 A beneficiary is a person or trust designated as the recipient of the policy proceeds after the death of the insured. The beneficiary submits a claim to the life insurance company for the policy proceeds. You, as the policy owner, can decide who to designate as your beneficiary (or beneficiaries).