Frequently Asked Questions

Life insurance coverage includes financial support for your family or loved ones if you die unexpectedly. It covers a range of expenses such as loss of income, end-of-life costs, outstanding debts, mortgage payments, college tuition, and more. The coverage options are flexible and can be tailored to meet your specific needs.

The amount of life insurance you should get depends on your specific needs. Consider your family’s financial situation and future outlook. If you’re the main provider, a larger policy may be wise. It’s best to talk to an Acceptance insurance agent to find the right plan for your loved ones. They can guide you and help you make an informed decision.

The beneficiary is the person or people who will receive the funds from your life insurance policy if you pass away. It’s important to name a beneficiary to ensure that the money goes to the right person(s) you want to benefit. If you don’t name a beneficiary, the payout will follow the terms of the insurance contract. Usually, it goes to your spouse, children, parents, siblings, or your estate.

The best time to get life insurance is when it feels right for you. Waiting to purchase a policy can increase costs as you get older and may complicate qualifying if you have health issues. However, many people choose to get coverage when they reach important milestones like getting married, starting a family, or starting a business. Ultimately, it’s up to you to decide when the time is right to protect your loved ones with life insurance.

The duration of your life insurance coverage depends on your unique circumstances. If you have dependents, such as a spouse or young children, you may want coverage for a longer period, like 20-30 years, to provide financial security for them. However, if you don’t have dependents or are financially independent, a shorter coverage period may be enough. It’s a good idea to discuss your needs with your loved ones and an insurance agent to find the right duration for your life insurance policy.

In general, life insurance benefits and proceeds are not subject to taxation when they are paid directly to specifically named beneficiaries. However, it’s important to note that if the insured’s estate is named as the beneficiary, the proceeds may be subject to estate tax.