Individual Life Insurance FAQs
There’s no single answer. In terms of replacing income, rules of thumb range anywhere from 2 to 10 times your annual gross salary, provided you are working and depending upon how many people you support.
The amount of coverage will depend on many variables, including your income, assets, financial commitments, familial obligations, and career path. You may want to use GEBA’s calculator to help you estimate the amount of insurance you need. Our licensed Consultant’s are also available to help you with your insurance needs.
When you apply for Group Term Life Insurance, your application, activities and general health are reviewed to determine your eligibility for coverage.
GEBA’s Group Term Life Insurance plan is a unique product for our members. Your group policy continues as long as you pay your premiums. The Group Term Life Insurance policy differs from Individual Term Life Insurance in that the coverage is capped at $600,000 for the member, the rates will increase throughout the term based on age, and your coverage decreases at age 65. With Individual Term Life coverage, your premiums remain the same for the length of the term, and there is no limit on coverage amounts. GEBA’s Insurance and Investment Consultants can help advise you about whether a Group or Individual Term Life policy best fits your needs.
Generally, you should review all your options when purchasing life insurance. There are a number of specific situations where individual insurance is a good fit:
- Your coverage needs exceed $600,000 (our group policy’s maximum)
- You require coverage that does not decrease after age 65. This is necessary for people:
- With Special Needs Children
- Have long term debt that will exist significantly after age 65
- Replacing there Pension’s survivor benefit with life insurance (Pension Maximization)
- Performing legacy and estate planning to maximize their gift to their heirs
- You are over the age of 65 and no longer able to enroll in GEBA’s Group Term Life Insurance Program
There are choices in the type of individual life insurance so we recommend that you meet with one of our licensed Insurance and Financial Consultants. During this consultation, the Consultant will understand your insurance needs. This will help in shopping the marketplace for the best policy for you.
The process for applying for life insurance can take a long time, 4-6 weeks under ideal circumstances. The life insurance company is diligent in evaluating and underwriting your application. Here are the steps that follow your initial consultation:
- You will complete a Pre-Enrollment Health Questionnaire.This allows us to get the most accurate health-based quotes from different insurance companies.
- Our Consultant will review the quotes with you at a second appointment.
- You will have time to review the insurance options. If you decide to proceed with one of the options, then we will work with you to complete the application and send it to the chosen insurance carrier.
- You will be contacted to schedule a physical exam. We recommend that you fast 12 hours prior to the exam and consume no alcohol or coffee 24 hours prior to the exam. For most members, scheduling the exam at your home on a Saturday morning is ideal.
- The insurance company will take the information from your application and your physical exam to determine the final rating and price. The final quotes may differ from the initial Pre-Enrollment Health Questionnaire quotes if any information was missing.
- It's your decision then to accept or reject the insurance company’s final offer.
- If you accept, you will be required to pay the initial payment to have the formal policy in force.
As a rule of thumb, the benefit amount, the benefit period and the cost of the insurance should be your primary drivers when determining which life insurance is the best for your situation. Whole Life Insurance does have a cash value, but is generally the most expensive option. In many cases, it makes more financial sense to buy a Term policy and invest the savings.