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Life Insurance Basics

Frequently asked questions about life insurance

The questions and answers in this article are designed to help you with some of the basic questions asked by many people when trying to understand life insurance.
When it comes to life insurance, there are many questions. Here are answers to some we hear most often.
Likely less than you think. A recent industry study shows consumers believe life insurance costs nearly 3 times the actual price.* To get a fast, free quote for the Protective® Classic Choice Term life product, visit our quote engine.

*Source: LIMRA, Facts about Life 2017
We do offer a portfolio of products that provides you affordable protection with a guaranteed fixed premium and coverage level for a specified period of time. With a Protective® Classic Choice Term life policy, you could get protection you need today with options for the future.
When you apply for life insurance, the insurance company assesses your potential risk of dying and sets the premium accordingly. You pay the premium to the insurance company, and if you die while the policy is in force, the insurance company pays your heirs a death benefit.
It depends on your situation. Your agent can help you determine how much money your beneficiaries might need. Things to consider are:

• Any immediate expenses, such as hospital bills, funeral costs and estate taxes

• Ongoing and future expenses like a mortgage, household expenses, food, tuition and healthcare

• Additional expenses that might arise from you not being there, i.e. childcare costs and household maintenance

• The amount of your current assets, including checking and saving accounts, investments and any other life insurance you may have
For most people, no. First, employer-based policies often don't provide enough coverage to replace your income for very long. Second, employer-based policies typically end soon after you leave the job. This means if you quit your job or get laid off or fired, your family could find themselves without coverage when they need it.
In most cases, the death benefit goes to your beneficiaries tax-free.
Any insurance company selling life insurance belongs to a state-mandated organization called a guaranty association. So if the life insurance company goes bankrupt, the guaranty association will still likely offer you some coverage. The rules and amount of coverage varies by state. In the end, checking your potential insurance company's financial strength rating before you buy is important. View Protective Life's ratings here.
These routine exams can usually be done in 25 minutes or less. They include height, weight and blood pressure checks, urine and blood samples and a request for medical records. Protective Life covers the cost of your exam, depending on the carrier.
Yes, but there may be limits to the amount of coverage that you can purchase without a medical exam, depending on the carrier.
Not necessarily. It depends on the medical condition, the insurance company, the policy and other factors. Some medical conditions could simply mean paying a higher premium.
Even without kids or a spouse, you may have other family members to protect from things like unpaid debts or your funeral costs. Many single people also want to provide for aging parents who might be relying on their children as they get older.
It can make sense if you're a partner in a business. A buy-sell agreement can be helpful if you or your partner should die. The policy allows the remaining partner(s) to buy out the deceased partner's interests at a pre-negotiated price. Another way life insurance can help is key person insurance. Key person insurance provides the owner(s) money to help replace the loss of a key person.

For more information on life insurance options, give us a call at 1-844-733-5433 and talk with a Protective Life Agent. Or get a free online quote for the Protective® Classic Choice Term.



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Protective® Classic Choice Term (ICC16-TL21 / TL-21) is a term life insurance policy issued by Protective Life Insurance Company, Nashville, TN. Premiums increase annually after the initial guaranteed premium period. Not available in New York. Policy form numbers, product features and availability may vary by state. Consult policy for benefits, riders, limitations, and exclusions. There are no cash values. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age or sex. In Montana, unisex rates apply. Any quote that is present is only an estimate and the actual premium and rate class will be determined after the underwriting process is completed. Neither Protective Life nor its representatives offer legal or tax advice. You should consult your attorney or tax advisor regarding your individual situation. The Company cannot increase the premium scale. All payments and all guarantees are subject to the claims paying ability of Protective Life Insurance Company.
All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective or its subsidiaries.

Neither Protective nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective and its products and services, visit

Companies and organizations linked from Learning Center articles have no affiliation with Protective or its subsidiaries.