Life FAQS
Life FAQs 
  1. Life insurance is a must-have, especially if others are depending on you. It’s all about financially protecting the dreams of those you care about, in case the unexpected were to occur. A life policy can provide peace of mind by helping to relieve the financial burdens associated with these types of expenses:

    Living expenses and debts: Mortgage or rent payments, childcare, credit card or loan debt, or care for an elderly or disabled relative.

    Future plans: Education funds or retirement plans.

    Final expenses: Memorial service costs.

    Lasting legacies: Continuing the business you worked hard to build, or supporting organizations or causes with charitable giving.

    Life insurance is for anyone with dreams worth protecting.
  2. Although life insurance needs vary from person to person, here’s a simple equation that can help: Resources (significant other’s income, investments, existing life insurance) – Current/Future Needs (debts, child education/daycare, income replacement) = Your Life Insurance Needs. 

    Want help getting started? Our Life Insurance Needs Calculator makes it easier to figure out how much life insurance you’ll need.  At the end of the day, though, your agent is the best person to talk to about determining how much life insurance is just right for you.
  3. That’s a good question. There are two categories — temporary and permanent life policies — and American Family Life Insurance Company offers both.

    Temporary life insurance provides coverage at a lower initial cost. This includes term life insurance, which remains in effect for a specific term or length of time at a set premium. Our SimplyProtected® Term Life Insurance can be a great starter policy, while our Term Life Insurance offers temporary coverage for greater needs, like families.

    Permanent life insurance provides lifelong protection. This includes whole life insurance, offering long-term coverage with guaranteed premium payments that remain the same regardless of health or age changes. The policy builds cash value, and may pay dividends. Our Whole Life Insurance provides dependable, long-range protection and other attractive benefits. 

    You might also consider MyLife Flexible Life Insurance for your permanent life insurance needs. A MyLife policy provides long-term protection with built-in flexibility to meet your evolving needs.

    We also offer supplemental coverages, known in the business as “riders,” which can enhance your life policy, too.

    Simply Protected Term Life Insurance: Policy Form L-36 10, Policy Form L-36 20, Policy Form L-36 30

    MyLife Flexible Insurance: Policy Form ICC13-97 UL, L-97 UL (AZ, ND, SD only)
  4. Life insurance is all about protecting your loved ones’ future, right? So it makes sense to choose a financially stable company — like American Family Life Insurance Company — that’ll help you make sense of your options so you can choose the coverage that’s right for you.
  5. As your dreams evolve, so should your life insurance. Whether you’re getting married, having a child, or buying that dream home, American Family offers flexible life insurance options. You can choose from various term durations, or plans with flexible premiums and coverage amounts to meet your changing needs.

  6. Here’s an interesting fact: most Americans overestimate the cost of life insurance. So, it may be less expensive than you think! The type of policy, coverage amount, and your age, health and gender play a big role in determining premiums. The younger and healthier you are, the lower your rates. Talk to your agent about getting the right coverage at the right price.
  7. Yes, that’s just one of the many benefits! Here are a couple examples: Beneficiaries don’t pay taxes on benefits they receive. Or, if your permanent life insurance policy has a cash-value component, that accumulates on a tax-deferred basis.
  8. Good for you — that’s great that you have life insurance through your employer. But keep in mind that the life insurance provided at work might not be enough. Also, life insurance provided through work may not be “portable.” In other words, if you change jobs, you may lose that life insurance. That’s why it’s smart to carefully evaluate whether your work-related life policy truly meets your needs.
  9. Getting a quote is easy and convenient! Just contact an American Family agent to quickly discuss your unique life insurance needs, explore options and receive a quote that’s right for you, your loved ones and your budget.
  10. Either one may be right for you depending on your needs.

    If you’d prefer coverage for a limited length of time at a lower cost, temporary life insurance – or term coverage – might be just right for you. Term life insurance is popular among people seeking the lowest-costing options to provide the coverage they need.

    If you’re looking for lifelong protection with advantages that might include building cash value, or even possibly earning dividends, consider permanent life insurance. Permanent life insurance is a good way to ensure you are covered for your whole life.
  11. Imagine having a permanent life policy with no payments after a specified period of time. That’s the advantage of having a paid-up life policy. When you choose a policy that offers a paid-up insurance option, you continue to make payments on a policy until it’s all paid for, and then the policy remains in effect permanently with no additional payments. Interested? Talk to your agent for more information.

  12. Each policy offers different supplemental coverages that may be right for you. For instance, you might consider a Guaranteed Purchase Option, which may give you extra peace of mind by allowing you to buy additional permanent coverage in the future — regardless of health changes. There’s also an option that would waive your premium payments if you became disabled during the term of your policy and an option for adding your children to your personal life insurance policy, too. Ask your agent for details.

  13. The nice thing about most policies is that premiums will stay the same for the entire term of the original policy. With some policies, premiums can increase once the initial term is complete. Before your policy term ends, plan ahead and talk to your agent about your changing needs.

  14. For starters, your age and health are key factors affecting your premium. The younger and healthier you are, the lower your rates. Your gender and your job are other factors, too. And, of course, the type of plan and coverage amount will help determine your rates.

  15. Not necessarily. Each policy has different medical requirements, depending on the plan type and coverage amounts involved. For example, SimplyProtected® Term Life Insurance doesn’t require medical exams or tests. Talk to your agent for details.
  16. It’s all about finding the right balance between your coverage needs and affordability. You can start by using our Life Insurance Needs Calculator to quickly and easily determine how much insurance you might need. Next, talk to your agent about the best types of insurance and coverage amounts that can protect your dreams within your budget.

    Keep in mind that the younger and healthier you are, the lower your rates probably will be. Also, if you need coverage for a specific length of time, term insurance may be an affordable choice to consider.