It’s totally normal not to want to ask questions about life insurance—no one enjoys thinking about their mortality after all. However, you’d be doing yourself a disservice. Understanding how the whole system works, how your loved ones can receive money, and what you’re covered for all give you a greater picture and can give you more peace of mind. Even understanding why an applicant’s signature is required on a life insurance application is helpful info.

Below, we break down some of the main FAQs about life insurance you’re probably wondering the answer to or at the very least, should know the answer to.

Why Is an Applicant’s Signature Required on a Life Insurance Application?

This one actually has a really simple answer. The reason behind it is to attest that the statements on the application are accurate to the best of the applicant’s knowledge. Essentially, it’s a liability piece on part of the insurance company so that people are truthful and honest in their applications and can be held accountable for them.

How Does Life Insurance Work?

As the name indicates, life insurance insures your life so that when you pass away the people you’ve named as your beneficiaries are financially protected to keep living their lives.

As for the system itself, it’s simply a contract (often referred to as policy) between you and a life insurance company that’s determined by many factors, but often many of them are focused on your health.

This contact also details how much coverage you’re entitled to and the premium you need to pay to keep the contract valid. Both how you will be paying your premium and how your beneficiaries will be paid out upon your passing will also be detailed in the contract.

Typically, your beneficiaries will be paid out through the according lump sum you’ve detailed they are entitled to based on the policy you’ve chosen.

What Does Life Insurance Cost?

Unlike other kinds of monthly costs, life insurance can be as inexpensive as $15/month for a young healthy adult in their 20s to $1000/month for a cigarette smoker who’s already had cancer. Naturally, that creates a pretty wide range of potential monthly payments.

As mentioned previously, life insurance policies are mainly based on the health of the person being insured. Someone who’s young, healthy, and has no existing medical conditions will pay a small amount each month as they likely have a long life ahead of them. The opposite can be true for someone in their 90s who may need assisted living or a dedicated nurse.

When you go to a life insurance provider, they will be able to detail how much life insurance you can expect to pay based on your health factors and discuss potential options to make life insurance more affordable for you.

When Should You Get Life Insurance?

You should get life insurance when it makes sense to help protect your milestones. If you’re right out of high school it really doesn’t make sense to purchase right away.

However, for those in established careers, newly married couples, or those with new kids they need to take care of, life insurance makes sense to get right away to protect what you’ve helped build and achieve.

How Do You Buy Life Insurance?

Life insurance coverage varies drastically, and while it’s possible to purchase on your own, we recommend getting the help of a life insurance advisor to help you navigate what to buy. Not only can you often get better premiums through a life insurance advisor, but you can also ask them any questions or concerns you have to better address your financial needs.

Life insurance may make you squirm to talk about, but it’s an important conversation to have to protect those you care about.

Get help navigating the right life insurance policy for your needs with the help of our experienced team. Contact us today to book an appointment!