Life Insurance FAQs – Answers for Dallas & Fort Worth Families
Choosing the right life insurance plan can feel overwhelming, but it doesn’t have to be. Whether you’re starting a family, supporting loved ones, or planning for the future, life insurance helps protect your financial legacy. At HealthGuys, we’ve helped thousands of individuals and families in Dallas and Fort Worth navigate their life insurance options with clarity and confidence.
Below, you’ll find answers to the most common questions we get about life insurance, written in plain, helpful language so you can make informed decisions.
Who Really Needs Life Insurance?
If anyone depends on your income, such as a spouse, children, or aging parents, you should strongly consider life insurance. Life insurance provides a financial safety net to cover essential costs like the mortgage, bills, childcare, or education if you’re no longer there to provide. Even stay-at-home parents and business owners may need coverage to protect family or business continuity.
What Does Life Insurance Actually Do?
Life insurance pays a tax-free lump sum, called a death benefit, to your chosen beneficiary if you pass away while your policy is active. This benefit can help your loved ones cover immediate expenses (like funeral costs), maintain their standard of living, and plan for the future without financial strain. Essentially, it helps replace your income and the financial value you bring to your family.
How Much Life Insurance Do I Need?
A common rule of thumb is to aim for a death benefit that’s 10–12 times your annual income, but the right amount depends on your family’s needs. Ask yourself:
- How long would your income need to support your family?
- What are your current debts (e.g., mortgage, loans)?
- Do you want to fund your children’s college education?
- What about covering ongoing costs like utilities, food, or healthcare?
Our licensed agents at HealthGuys will help you calculate a coverage amount that fits your specific situation.
Is Life Insurance Always Worth It?
If you have dependents or financial responsibilities, yes—life insurance is almost always worth the investment. It brings peace of mind and prevents your loved ones from inheriting unexpected burdens. However, if no one depends on your income, a smaller or alternative form of coverage might suffice. Talking with an expert can help you determine the right approach.
Does Life Insurance Pay Out for Suicide?
Most life insurance policies include a suicide clause, which typically excludes coverage for suicide within the first two years of the policy. After that period, claims are generally honored. Every policy varies, so it’s important to read the fine print and ask your agent for clarity before enrolling.
Do Life Insurance Premiums Stay the Same?
That depends on the type of policy:
- Term life insurance has fixed premiums for the term (e.g., 10, 20, or 30 years).
- Whole life and universal life policies may have premiums that can change over time, depending on the structure of the plan.
Before choosing, make sure you understand how your premiums will behave long-term.
What Affects the Cost of Life Insurance?
Several factors impact your premium, including:
- Age: Younger applicants generally pay less.
- Health: Chronic conditions or risky medical histories can raise rates.
- Lifestyle: Tobacco use or dangerous hobbies may increase premiums.
- Policy type and length: Term policies tend to be more affordable than permanent ones.
- Coverage amount: Higher benefits come with higher premiums.
You may also need a medical exam or health questionnaire during the underwriting process.
What Types of Life Insurance Are Available?
There are two primary categories:
1. Term Life Insurance
- Offers coverage for a set period (10–30 years).
- Typically more affordable.
- Ideal for temporary needs like mortgage protection or raising children.
2. Permanent Life Insurance (Whole/Universal Life)
- Covers you for life, as long as premiums are paid.
- Builds cash value over time.
- Often used for long-term estate planning or wealth transfer.
HealthGuys helps you weigh the pros and cons of each type based on your stage of life, budget, and goals.
Can I Change My Life Insurance Policy Later?
Yes. Life insurance is not a one-time decision. As your life changes—marriage, kids, buying a home—you might need to increase or adjust your coverage. Some policies allow you to make changes, while others may require a new application. Our team can help you review your current policy and make adjustments when needed.
How Do I Choose a Beneficiary?
A beneficiary is the person (or people) who will receive the death benefit. You can name:
- A spouse or partner
- Children or other family members
- A trust
- A charitable organization
Be sure to update your beneficiaries after major life events like marriage, divorce, or the birth of a child.
Do I Need Life Insurance if I Already Have Coverage Through Work?
Group life insurance through your employer is a great benefit, but it’s usually not enough on its own. These policies often offer limited coverage (1–2x your salary) and may not be portable if you change jobs. An individual life insurance policy ensures you’re protected no matter where you work.
Can Stay-at-Home Parents Get Life Insurance?
Yes—and they should. While stay-at-home parents may not earn a salary, they provide immense financial value to a household (childcare, transportation, home management). If something were to happen to a stay-at-home parent, the cost of replacing those services can be substantial.
What If I Have a Pre-Existing Condition?
You may still qualify for life insurance even with health issues like diabetes, high blood pressure, or past cancer. While it might impact your premium, many providers specialize in covering people with pre-existing conditions. HealthGuys works with multiple carriers, so we can help you compare plans that suit your health profile.
Need Help Choosing a Life Insurance Plan?
At HealthGuys, we believe life insurance should be simple, affordable, and personal. Our licensed agents serve Dallas and Fort Worth, TX, and we’re here to help you:
- Compare term and whole life insurance options
- Calculate the right coverage amount
- Find the best value based on your health and goals
Give us a call at 866-438-4325 or send a message today to schedule your free consultation.