Life Insurance FAQs

How much life insurance do I need?

Since life insurance replaces lost income if something happens to you, the proceeds from your policy should be enough to cover immediate expenses as well as to provide continuous income for your beneficiaries.

Most financial planners recommend coverage that‘s 5 to 10 times your annual income. For example, if you make $50,000, you might consider coverage between $250,000 and $500,000. If you‘re younger and just starting a family, you might need as much as 15 times your income to allow for salary increases.

Since individual needs vary, we recommend that you speak to one of our licensed sales agents to help you determine what‘s right for you. We also recommend you consult your attorney or financial advisor for professional legal, tax and financial planning advice.

What if I already have a life insurance policy?

If you wish to replace a life insurance policy with one through SelectQuote, you should not cancel your old coverage until you have received, reviewed and accepted your new policy. Cancel your old policy after all final requirements for the new one are complete and you have received notification from the insurance company that your policy is in force.

Please make sure to consult your legal or tax advisor. The surrender of cash value policies may involve surrender penalties and tax consequences. New policies have contestability and suicide period provisions.

What is spouse life insurance?

The need for term life coverage applies equally to income-earning spouses, and there are strong arguments for acquiring life insurance for a partner who is not drawing an income as well. For instance, losing a stay-at-home spouse can lead to dramatically increased child-care costs, time away from work for the surviving spouse, final expenses, the settling of outstanding debts, and these are just the financial aspects of such a serious loss. The rule of thumb is to get at least 50 percent of the term life coverage for a stay-at-home spouse as for the primary breadwinner.

How long do I need life insurance coverage?

The length of coverage you need depends on several things, but the most basic consideration is how long you expect your beneficiaries to be dependent upon your income. If your spouse is your beneficiary, you should consider being covered until you plan to retire. If it‘s your children, you‘ll probably want to protect them until they‘re 18 or finish college. To cover a mortgage, choose a policy that will be in place for at least the length of the loan. Depending on your age, you can purchase policies guaranteed for 10, 15, 20, or even 30 years.

What’s the difference between term and whole life insurance?

Term life insurance is issued for a specific period of time, typically 10, 15, 20, 25 or 30 years. A whole life insurance policy lasts as long as you pay the premiums. Term life insurance is less expensive than whole life insurance because it is limited to a specific period of time.

Learn more about term life insurance and whole life insurance.

How do I apply for life insurance?

With SelectQuote, it’s a simple 3-step process:

Step 1: Get started by requesting a free quote.

Step 2: We’ll instantly find the best option for your needs based on your health and lifestyle. Remember, our services are free and unbiased. After selecting the plan, you will likely need to complete a medical exam.

Step 3: Following your medical exam, the insurance carrier you’ve selected will provide you with a policy offer.

Is SelectQuote licensed to sell life insurance in my state?

SelectQuote is licensed to sell life insurance in every state, with the exception of South Dakota. What’s more, your personal representative is fully licensed in your state, so you‘ll be able to speak to someone who knows your state‘s rules and requirements.