Products & Services

Life Insurance

McCarthy Insurance can help explain the nuances of life insurance.  Find answers to the most common life insurance questions below or contact us directly.

How much life insurance should I purchase?

If you have a family, many experts suggest that you need an amount equal to 5 to 10 times your annual salary. However, many people own higher coverages to provide more income for their family.

How can life insurance funds be used?

Your life insurance funds can be used for a number of needs, including:

• Any needs after the time of death, such as final illness expenses, burial costs and estate taxes. 
• Funds for a readjustment period, to finance a move, or to provide time for family members to find a job.
• Ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement.

Compare Life Insurance: Term vs. Permanent

Term life insurance provides you with coverage for a specific period of time. It pays a benefit only if you die during that term. Some term insurance policies can be renewed at the end of the period. Premium rates may increase at each renewal date. Because term insurance premiums are generally lower than permanent insurance premiums, you can usually afford a higher level of coverage. Term insurance is good for responsibilities that will diminish or end over time, for instance, mortgages or car loans.

Permanent insurance is designed to be a lifelong policy and is known by a variety of names. As long as you pay the necessary premiums, the death benefit will always be there. These policies are designed and priced for you to keep over a long period of time.

In addition, permanent life insurance policies can build cash value over time. This is money that can be borrowed against and, in some cases, withdrawn to help meet future goals. Please note that accessing your cash value may reduce the death benefit and increase the risk of lapse.

What's the difference between standard and preferred rates, and how do I qualify for preferred rates?

Most often preferred rates require you to be in excellent overall health. Specifically, that means you must:

• Be within strict limits on height, weight, cholesterol, and blood pressure
• Have no family history of any significant health impairments
• Not use tobacco in any form
• Have no history of drug or alcohol abuse
• Not be engaged in any hazardous activities

Do I have to take a medical exam to qualify for life insurance?

In most cases, an exam is required. If so, we will pay the costs and have it done at a time and place convenient for you – often right in your home.

Will my policy ever be canceled for health reasons?

As long as you keep your premiums current, your policy will never be canceled because of a change in your health, and you will not be asked to provide evidence of good health in order to renew your policy each year. However, you have the right to cancel your policy at any time.

What happens if I become disabled?

Many policies include an optional rider that provides a "waiver of premium" for total disability. In the event you become totally disabled (as described in the rider) for a certain period (typically six months or longer), then Farmers will pay your premium for you until you are no longer disabled.

Should I get coverage for my spouse and/or children?

Coverage for both spouse and children can be a very good idea. The financial strain on a family after the loss of a spouse can be significant, even if the deceased wasn't earning an income. Often the surviving spouse will want to take time off work or change jobs in order to spend more time with the children. Coverage for children is also available to cover final expenses. It can also guarantee insurability for the child's future.

When I send in my application, should I include a check?

Although most people submit a check with their application, there is no requirement to do so. The premium can be paid once the policy has been approved.