FAQ's
Our Frequently Asked Questions
A life insurance policy is very simply a contract between you and an insurance company. In that contract, you agree to make regularly scheduled premium payments in exchange for a death benefit if you die while the policy is in force. The policy can be in force for a specific number of years or the duration of your life.
Your policy can help cover some of your loved ones greatest expenses such as a home mortgage, debts, your children’s financial needs, and it can assist in replacing lost income. It is truly there to help your love ones cover everyday expenses.
The carriers Kismet partners with make it simple for your beneficiaries to file a claim and receive the benefits. If you (the insured) passes away and your coverage is active, your beneficiary can file a claim with your insurance carrier, and the carrier will coordinate with them to pay your policy.
- For instance, if there are no unusual circumstances, your listed beneficiary will receive an untaxed, lump-sum payment for the value of the policy (the death benefit). Let’s say you purchased $500,000 in coverage, your beneficiary will receive tax-free $500,000 payout.
A common and easy way to come up with a coverage estimate is to multiply your annual income by 10. Ultimately, it depends on your financial goals and it varies for everyone. Will you be using it as supplementary income for retirement? Would you like it to cover your children’s education? Who is it for and what will they be using it for? These are some of the questions Kismet suggests to think about when deciding your coverage amount.
Life insurance rates increase as you age, so the sooner you get it, the lower your premium will likely be. Applying soon means you can lock in your lowest rate. Owning life insurance is important if you have just purchased a home and need to cover the mortgage, if you’ve recently had a baby or have plans to in the future, or if you would like to provide income replacement for your family in the event of your death.
After you submit an application, underwriting begins. Underwriting is the process life insurance companies use to determine whether they are able to offer life insurance coverage to applicants, and the premiums they charge. Factors including an applicant’s age, sex, health, lifestyle, contribute to the life insurance company’s decision.
There’s a good chance it’s not enough. Additionally, the coverage typically won’t last if you leave the company. Employer-sponsored life insurance is a great benefit, but it may not provide enough coverage to protect your family. Most employer-sponsored policies offer coverage that is the equivalent of 1 to 2 times your annual salary. So if you make $50,000 per year, your employer may offer $100,000 in life insurance coverage at minimal cost to you. While this is helpful, your family would likely need much more support in the event of your death. Many financial experts recommend that you have coverage with a benefit of at least 10x times your annual salary.
We only partner up with top-rated life insurance companies that have been around for centuries and have demonstrated financial strength and stability.