1. What is life insurance, and why is it important?
   Life insurance is a contract between you and an insurance company, where you pay premiums in exchange for financial protection for your loved ones in the event of your untimely death. It provides peace of mind by ensuring that your family's financial needs are met, such as paying off debts, covering living expenses, and funding future goals--long after you're gone.

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2. What types of life insurance policies are available at Ashley Insurance Agency?
   Ashley Insurance Agency offers two main types of life insurance coverage: term life insurance and permanent life insurance. 

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Term life insurance - Term life insurance provides protection for a specific period of time (the term). This is often 10, 20 or 30 years. Term life insurance makes sense when you need protection for a specific amount of time--for instance, until your kids graduate from college or your mortgage is paid off.

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Term life insurance typically offers the most amount of coverage for the lowest initial premium. This makes this type of life insurance policy a good choice for those on a tighter budget.

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Permanent life insurance - Permanent life insurance provides lifelong protection for as long as you pay the premiums. It also accumulates cash value on a tax-deferred basis, which you can tap into to buy a home, supplement your retirement income, cover an emergency expense and more.

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Because of these additional benefits, initial premiums are higher than what you’d pay for a term life insurance policy with the same amount of coverage.

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You Might Want a Mix - Depending on your circumstances and financial goals, sometimes a combination of term and permanent insurance is the answer. Get an idea of the types of life insurance policies that could work for you by using our Product Selector.

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3. How much life insurance coverage do I need?
   The amount of life insurance coverage you need depends on factors such as your income, debts, expenses, and future financial goals. We partner with Life Happens, a life insurance non-profit organization with an easy to use calculator to help you determine what you might need. Or, our experienced agents at Ashley Insurance Agency will assess your individual needs and help you determine the appropriate amount of coverage to protect your loved ones adequately.

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4. What factors affect the cost of life insurance premiums?
   Several factors influence the cost of life insurance premiums, including your age, health status, lifestyle habits (such as smoking), prescription history, the type and amount of coverage, and the length of the policy term. There may also be questions relative to your motor vehicle report, your occupation (checking for occupational hazards) your hobbies (some activities, like scuba diving, are associated with increased mortality, and your international travel plans.

 

Generally, the younger and healthier you are, the lower your premiums will be.

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5. How does the application process for life insurance work at Ashley Insurance Agency?
   The application process for life insurance is typically very easy. When you apply for life insurance, your life insurance application goes through a process called underwriting. Underwriting is when your insurance risk is evaluated. Approval and costs are based on your risk class. There are two types of underwriting: traditional underwriting and simplified underwriting.

• In traditional underwriting, you fill out a formal application and typically undergo a short medical exam. It can take several weeks to be approved when the life insurance application undergoes traditional underwriting.

• In contrast, simplified underwriting is usually a quick online life insurance application that does not require a medical exam. You can often receive instantaneous life insurance coverage. Just be aware that the coverage amount may be limited as well as more expensive with simplified underwriting.

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6. Who can be my life insurance beneficiary?
   A life insurance beneficiary is the person, people, trust, charity or estate who gets the payout on your life insurance policy after you die.

 

You’ll typically be asked to pick two kinds of beneficiaries: a primary and a secondary. The secondary beneficiary, also called a contingent beneficiary, receives the payout if the primary beneficiary is deceased. You can name more than one beneficiary, as well as the percentage of the payout you want to go to each one—for instance, you could designate 50% to a spouse and 50% to an adult child.

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There are special considerations when it comes to providing for minors as well as naming a charity or your estate as a life insurance beneficiary.

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7. Are there any additional benefits or riders that can be added to my life insurance policy?
   Yes, Ashley Insurance Agency offers various riders and additional benefits that can be added to your life insurance policy for an extra layer of protection or flexibility. Examples include accelerated death benefits, waiver of premium, and accidental death benefits.

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8. How long does it take to receive coverage after applying for life insurance with Ashley Insurance Agency?
   The timeline for receiving coverage after applying for life insurance can vary depending on factors such as the type of policy, underwriting requirements, and any additional information needed. We have ERIExpress Life policies that are instant issue policies, while larger fully-underwritten policies may take a couple weeks to finalize. Our team at Ashley Insurance Agency strives to make the process as efficient as possible, ensuring you receive the coverage you need in a timely manner. 

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9. I have life insurance through work. Is that enough coverage?
   While having life insurance through your employer can provide some level of coverage, it is likely nowhere nearly sufficient to meet all your family's financial needs. Employer-sponsored life insurance policies are a benefit (not a guarantee) and they typically offer coverage that is equal to a 1x-2x multiple of your salary in the event of your death. It is advisable to supplement your employer-provided coverage with an individual life insurance policy to ensure comprehensive, long-lasting protection for your loved ones. 

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10. Do I need Life Insurance?

    If someone depends on you financially, you are most likely someone who needs life insurance. Life insurance provides cash to your family or loved ones after your death. This cash, known as the death benefit, replaces your income and the many non-paid ways you support your household. Your family can use this cash to pay for expenses like funeral costs, a mortgage, college tuition and more.

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11. How does Life Insurance pay out?

    In most cases, the life insurance pay out is a lump sum paid to beneficiaries when the policyholder dies. To receive the life insurance pay out, you will have to file a claim with the insurer. They will need a certified copy of the death certificate in order to process the claim.