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Life FAQs

Frequently Asked Questions

Whether just starting your shopping experience or already understand the importance of owning life insurance. This section has something for everyone. It will help you to choose the right life insurance policy for your needs and your budget.


Guide to Who Needs Life Insurance

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Who Needs Life Insurance? How Life Insurance Can Help? Best Option
Breadwinners Life insurance can replace your lost income allowing your family to continue to pay everyday expenses. Term Life Insurance can cover the loss of income through your working years.
Stay-at-home Parents Life insurance can help cover the cost of services the parent provides for “free” such as child care and housekeeping. Term Life Insurance can help cover the cost of child care and housekeeping while your kids are young. 
Divorced Parents Life insurance can cover the child support payments. Term Life Insurance can cover the support payments until the child has reached 18.
Parents of a Special Needs Child Life insurance can help ensure that your child will have the financial resources they need no matter when a parent dies. Permanent life insurance provides a payout no matter when you die.
Homeowners with a Mortgage Life Insurance can help make the mortgage payments, so that your family can continue to live in the family home. You can purchase a Term Life Insurance policy that matches the years left on the mortgage.
Co-signed Debtors A Life insurance policy can pay off the outstanding debt when the primary debtor dies. You can purchase a Term Life Insurance policy that’s timed to end with the debt pay off.
High Net Worth Individuals Provide funds so your heirs can pay estate or inheritance taxes. A Permanent Life Insurance is best for those with estate tax concerns.
Business Owners Life insurance can pay off business debts if you die, help your heirs pay off business or estate taxes, or fund a buy-sell agreement. Term Life or Permanent Life, depending on the specific needs.
Investors Who Maxed Out Other Plans Some life insurance has a cash value component which can provide a supplemental source of retirement savings. Permanent life Insurance, which builds cash value that you can access.
People Concerned About Funeral Expenses Purchasing a small life insurance policy can help pay for your funeral and final expenses. Permanent life, such as final expense insurance.


You can pay by check, credit card or automatic deduction from your checking or savings account. Just select your preferred method of payment from the “Your Payment” on the back of the application. 


The issuing of a life insurance policy will honestly depend on the individual applying. It also depends on the type of insurance of life insurance you’re purchasing and the steps involved. It may take as little as several days or as much as several weeks for a policy to be approved.


If you are replacing an existing life insurance policy with a new one, you should indicate that in the space provided on the application. Under no circumstances, should you cancel your existing coverage until you have been approved for the new coverage, taken some time to review and activate the new policy. 


With the rising costs of medical services many terminally ill patients are faced with financial hardship during the worst possible time. Riders also referred to as Living Benefits, helps to ease the financial stress of a policy owner diagnosed with a critical, chronic or terminal illness. A rider is an option that can be added to a life insurance policy to provide additional protection and/or benefits.

Some riders are automatically included within the insurance policy; others must be requested at an additional premium. Each has its own unique features and purpose.

When invoked, the policy owner can access a portion or all of the policy proceeds, depending on the type of contract. This payment—which is made directly to the policy owner rather than the beneficiary - reduces the cash value and death benefit. 

Accelerated Benefit Riders are not a replacement for a Long Term Care Plan. Many policies contain a provision that allows a terminally ill person to collect a significant portion of his or her policy’s death benefit while still alive. The money can be used to get family finances in order, pay for uncovered medical expenses, or simply do certain things for your family or friends while you still can. It’s important to note that the amount taken out while still living is subtracted from the death benefit payments your beneficiaries receive, along with an interest charge for early payment of benefits.


You have a 30-day Risk Free period to review the policy. That means, no matter what the reason, if you decide not to keep the coverage you can simply write “cancel” on the Certificate, sign it and return the policy to American National within 30 days. We will void your policy and refund 100% of your payment. 


Life insurance is considered by many to be an important part of personal finance. In fact, 63% of Americans consider life insurance a necessity, according to Life Happens*, a nonprofit industry group. Yet there remains a great deal of confusion, and even skepticism, about life insurance. That’s because many people approach life insurance with predisposed notions. 

A life insurance policy is a contract with a life insurance company. In exchange for premium payments, the insurance company agrees to provide a lump-sum payment, known as a death benefit, to the beneficiaries of the policyowner upon death. 

There are two basic types of life insurance: term and permanent. Term life is the simplest, least expensive and the most widely applicable to most situations. With term life, a life insurance company pays the death benefit to the beneficiaries if the insured dies within a stated term—typically 10, 20 or 30 years. The premiums are fixed or level for the length of the term. That means that you may very well pay premiums for decades and “get nothing out of it.” But that’s good news, because it means you’re still alive.

Life insurance isn’t simply about placing a monetary value to someone’s life. It helps compensate for the inevitable financial consequences that accompany the loss of life. Ultimately, it helps those left behind cover the costs of final expenses, daily expenses, outstanding debts and mortgages, educational expenses – that would have been paid with the lost income. More importantly, in the aftermath of an unexpected death, life insurance provides a death benefit that can help lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.

* LIMRA, US Consumer Today: The Generations 2014



Some policies have a contestability period of 1 year but most policies have a 2-year contestability period. Which means during the first two years after buying life insurance, if it is found your insurance policy was issued under misrepresentation, withholding of information by the insured or the owner, or similar reasons, the insurance company can declare your insurance policy and any associated riders void. However, if fraud is determined, your insurance policy and any associated riders can be made void at any time. Additionally, if your policy is reinstated, the contestable period generally will start over from that date of reinstatement.