Life Insurance Basics

Do I need life insurance?

If you have a partner, children, or elderly parents who depend on you for support (financial or otherwise), then it’s a wise decision to purchase life insurance to provide them with a financial safety net, should something unexpected happen to you. You might not need life insurance, if you have already built up enough savings to provide that safety net on your own.

What does life insurance cover?

Life insurance benefits are paid in full in one lump sum to your beneficiaries when you die. Your beneficiaries can choose to use the money however they want to. Some people use the funds to pay off a mortgage. Others continue making rent payments. Often, life insurance benefits are used to care for children, fund college expenses, and cover day-to-day living expenses. They can be used to settle any unpaid medical bills, taxes, or co-signed debt that would otherwise transfer over to your co-signer. Although life insurance benefits are usually tax-free, sometimes the money is used to cover any estate taxes your family must pay to inherit your other assets.

When is the best time to get life insurance?

The best time to get life insurance is when someone depends on you. Also, the younger you are, the more affordable your life insurance is likely to be. It’s a smart move to lock in a low monthly price now, which will stay flat for the entire term of your policy.
As your needs change over time, you can change your insurance. If you have another child or buy a bigger house, your needs might increase, and you can apply for more coverage. As you save money or earn more over time, your needs might decrease, and with Ladder you can decrease your coverage (with no fees or penalties).

Can I get coverage, even if I’ve had some health problems?

At Ladder, every customer is underwritten individually and receives a price based on many factors, including health history, current health, age, sex, and use of tobacco. Unfortunately, in certain cases, health problems can result in being declined for coverage. That said, health problems in no way preclude you from applying. We have many happy customers who have a history of health challenges.

What happens if I miss a payment?

Non-payment forces us to cancel your policy. We don’t want to do that, so we offer a sixty-day grace period. If payment is still not received in the grace period, we’ll have no other choice than to terminate your coverage.