FAQs, Myths & Terms

Frequently Asked Questions

There is a very good chance you can.

Your insurability depends on a multitude of factors that include your diagnosis, associates health issues, and how well your condition is being controlled and monitored.

Every carrier underwrites differently, our team will work diligently to find a policy to fit your needs and your budget.


There are many factors used to determine how much coverage you may need.

Just to name a few:

  • How much debt do you have other than your mortgage?
  • How much do you spend each month?
  • How much do you save each month?
  • How much income do your survivors need if you aren’t around?

Even if you already have a life insurance policy, it’s a good idea to review it periodically to be sure it still meets your overall needs. If you have experienced one of these life changing events then you should consider talking with an agent:

  • Had a child
  • Got married
  • Changed jobs
  • Change in marital status
  • Bought a new home
  • Saving and investing for college
  • Started a business
  • Provide care or financial help to a child or elderly parent

Nicotine users tend to believe they cannot buy life insurance, or that any coverage available to them will not be affordable.   While it is true that on average smokers pay more for insurance, there is in fact coverage available. The trick is finding the best coverage, insurance company, and quotes.


This is a common response to the question of life insurance by people who have life insurance through work.  For example, most employer life insurance fall short of the amount of coverage you actually need.

What if you lose your job? You may plan to stay on your current job for the rest of your life, but the reality probably won’t cooperate. Whether by separation or by reassignment, your current employer provided life insurance policy will come to an end and at some point, and likely a lot sooner than you think.


Whether you should buy life insurance for your young children is a question of much debate.  Here are a few things to consider:

  • Account for final expenses if your child suddenly passes away.
  • Future insurability – once a policy is underwritten and put in force, it will stay in force regardless of changes in the child’s medical condition.
  • Life insurance makes an attractive accumulation vehicle. There are limits on much you can pay in premiums into a policy.  The policy can potentially become a source of liquidity.

Most of the time, a medical exam is required when you are buying life insurance. Getting your basic health profile helps insurance companies gauge your risks and your chances of living a long healthy life.

Though most life insurance companies require a complete medical exam before underwriting a policy, some carriers do offer non-med or no-exam policies.



Myths

If you are married or partnered and relatively young, you can’t afford not to have it. Ask yourself, what would happen to our family if they didn’t have your income? Could basic expenses be covered on just one salary?


Though a family with only one working parent may think they only have one income to protect, the truth is that should the stay-at-home parent suddenly pass, there are a number of costs that the family would incur. If you were to die, not only would that put an emotional strain on your partner, but it would put him or her in a financial bind. Daycare isn’t cheap, neither are long-term babysitters. The loss of the non-breadwinner in the family would cause increased child-care expenses for the breadwinner, which—even for the most highly-compensated breadwinner—can be a strain. This is an argument for non-breadwinners to purchase life insurance.


“I am young and healthy and everything’s going just fine.” The truth is getting life insurance while you are young can help you save money and increase flexibility in the long run.


It’s true, there are many caveats surrounding this decision. Our approach is simple; we give you the tools and knowledge to help alleviate the stress.


Maybe you own a business with debt, perhaps you are divorced/widowed/separated with children or your parents financially depend on you?  Need I say more, what are you waiting for?


Not necessarily.  There are distinct differences between term and permanent life insurance.  Our team will be happy to work with you to determine what is best for you and your situation.



Basic Terms

The policy owner is the person who owns the life insurance. In many cases, the policy owner is also the person who is insured by the policy. However, the policy owner may also be a relative of the insured, a trust, partnership, or a corporation.


A beneficiary is the person(s) selected by the policy owner to receive the life insurance payments upon the death of the insured.


Premiums are the payments made to the insurance company to purchase and keep a policy active.


A death benefit is the amount paid to the beneficiary at the time of the death of the insured.


The face amount of the policy is the amount of the death benefit as stated in the policy. This does not include additional amounts that the policy may provide.


Insurability refers to how likely an application is to be offered coverage based on current health, medical background, family history and other factors.



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