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Life Insurance Trends / Insurance Solutions Trends
Top 10 Life Insurance FAQs: Answering the Questions Clients Ask Most
September 16, 2025
Estimated Reading Time: 6m
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If you’re like most PALIG agents, life insurance questions come at you thick and fast. That’s why it’s a good idea to have short, straightforward answers teed up and ready to go.
To that end, here’s our top 10 life insurance FAQs, along with clear, effective responses that educate and build trust.
Do I Really Need Life Insurance?
If you have loved ones who depend on your income, yes, you most likely do.
Here’s why: should something happen to you, your life insurance benefits would replace your lost income. They would allow your family to cover your final expenses, pay off your debts and fund their ongoing living expenses. In short, life insurance would spare them the financial hardship they’d otherwise face if you were out of the picture.
How Much Life Insurance Do I Need?
At a minimum, your life insurance should cover the financial responsibilities your loved ones would still face if you were not around. To determine how much coverage you need, start by adding up your current financial obligations‑ like your family’s living expenses, mortgage, and any outstanding debt. Then factor in future needs, such as your children’s education or long‑term care for a loved one. Consider your future income and assets to see how your projected benefits measure up.
Agent Tip: Offer to help your client tally their financial obligations. If they have a spouse or partner, ask to include them in the process—it’s a decision that affects the whole family.
What Type of Life Insurance Policy Should I Buy?
The short answer is: it depends on your goals and financial situation.
In a nutshell, term life insurance is the more affordable choice and will provide coverage for a set period of time‑ usually 10,20 or 30 years‑ and is ideal if you need protection during key life stages, like raising children or paying off a mortgage. In contrast, permanent life insurance, such as whole life insurance and universal life insurance, lasts your entire lifetime and includes a cash value component that grows over time. While it costs more, it can serve as a long‑term financial planning tool.
Agent Tip: Often, arriving at an answer requires more in‑depth conversations. You’ll find more talking points here.
Is Life Insurance Expensive?
Actually, it may be much more affordable than you think. In fact, a study found that over half of consumers overestimated the cost of life insurance by a whopping 300%.
Of course, the best way to find out is to request a few quotes and see for yourself. Keep in mind: it’s not purely about the price, but what you get in return. Most people who buy life insurance consider it smart investment in their family’s future.
Agent Tip: Offer to run a few quotes or illustrations for your client so they can see the options firsthand.
Isn’t My Employer’s Life Insurance Enough?
It might be‑ but often the answer is no. To know for sure, you’ll need to take a good, honest look at your coverage.
- Here’s why employer‑provided life insurance may fall short: It’s usually term life, which only lasts for a set period of time and will end when your employment does.
- Coverage is limited, often a flat amount or a multiple of your salary‑ not always enough to cover all your financial obligations.
- It’s not portable, so you can’t take coverage with you if you leave the company.
Agent Tip: If your client isn’t sure what coverage they have, offer to review their certificate of insurance with them. It’s a valuable service to offer that builds trust and helps you tailor your recommendations.
How Do I Know If I Need to Buy More Life Insurance Coverage?
If and when your life situation or financial obligations change, chances are, you’ll need more coverage. Here are a few common scenarios where additional coverage might be necessary:
- You’ve taken on new financial responsibilities, like a mortgage or business loan.
- You have new dependents to provide for, such as spouse, child, or aging parent.
- Your current policy doesn’t cover all your loved ones or doesn’t reflect your updated financial goals.
- Life insurance isn’t a one‑and‑done decision – it should evolve with your life.
I’m Single and Don’t Have Kids…Do I Still Need Life Insurance?
Even if you’re single and childless, life insurance can still serve an important purpose. Everyone incurs final expenses, such as funeral costs and medical bills. You may also have outstanding debt or an estate that needs to be settled. Without coverage, those costs could fall to your loved ones. A modest life insurance policy can help cover these expenses, easing the financial burden on family or friends. That’s why many people without dependents still choose to carry life insurance – it's a thoughtful way to plan ahead.
What Is Cash Value in Life Insurance?
Cash value is a unique feature of permanent life insurance policies. It’s a separate component from the death benefit. Many policyholders earmark their cash value for a specific purpose, such as an emergency fund or to save for college or retirement.
Here’s how it works: When you pay your premiums, part of it goes toward the death benefit, and the rest is deposited into the policy’s cash value. This accumulates over time, often with interest or investment growth depending on the policy type. You can access the cash value through policy loans, withdrawals or by surrendering the policy – though each option has implications for your coverage and taxes.
Agent Tip: Offer to prepare a personalized illustration for your client that would show them how cash value would accumulate over time and support their financial goals.
What’s the Best Age to Get Life Insurance?
The best age to get life insurance is when you need it—typically when you have loved ones who depend on you or financial obligations to protect. But here’s something important to keep in mind: life insurance premiums are based on age and health. The younger and healthier you are when you obtain it, the lower your premiums are likely to be. So, don’t put off buying life insurance if you need it—acting early can lock‑in lower rates and ensure full protection.
Why Should I Get My Life Insurance through PALIG?
There are plenty of reasons to choose PALIG as your life insurance provider. Here are three of the most compelling:
- – For more than a century, we’ve honored our promises and paid claims reliably. It’s part of our legacy!
- Financial strength – Our solid balance sheet and strong capital generation shows we’re well‑equipped to meet our commitments – today and in the future. See for yourself.
- – Year after year, we earn high marks from independent rating agencies like AM Best and Fitch Ratings—a recognized indicator of reliability and stability.
Agent Tip: Chances are, you chose to represent PALIG for these very same reasons. Sharing your personal connection to the company can be a powerful way to build trust with your clients.
These are the 10 most common client questions, but of course, there’s many more. If you ever need help answering one, contact your PALIG sales team. We’re here for you!
This article has been prepared for informational purposes only, and does not constitute personal advice.