Life Insurance FAQ

What if I have a serious health condition?
  •  There are many ways to still get you the coverage you need, despite less than perfect health.  We can help you access these special programs that reward you if you are working diligently with your medical care provider to control and improve your health. Many people with the following conditions can get standard life insurance:
    • Heart Attack
    • Stroke
    • By-pass surgery
    • Diabetes
    • Depression
    • Cancer
    • Hepatitis C
    • Sleep Apnea
    • Obesity
    • Past driving violations
    • Past drug/alcohol problems

    Let us show you how we can help.

What Type?
  •  Term:  Has the least initial expense, but should only be used for a short term need such as collateral for a loan.  Otherwise you risk outliving your life insurance. Less than 5% of all death claims are paid by term insurance. If its not there when you need it, does it matter how much money you saved in the past?

  • Universal Life:  A flexible policy. The death benefit is usually guaranteed for a specified time.  The cash value growth is subject to market interest rates (the interest paid goes up and down according to the general market).  The amount of cash value growth can effect the length of time the initial death benefit will be paid. Within limits, the owner can raise or lower either the death benefit or the premium as their needs warrant. It can be a good tool for accumulating cash value if sufficient premium is paid.
  • Whole Life:   THE policy for guarantees.  You pay the premium, the policy will be there as long as you live–guaranteed.  A participating policy pays non-guaranteed dividends to the owner which can be used to increase the cash value and death benefit significantly over time. A great policy as a starter for children and grandchildren, it is also perfect as a final expense policy.
  • Joint Life: As its name implies, this type of policy covers more than one life.  It pays either on the first death (Buy-Sell Policies) or the second death (Estate policies).  If one of the two people has a significant health condition, many times they can be covered due to the joint mortality the policy enjoys.
  • Variable Life: This is a securities product that allows you to direct how the cash value of your policy is invested.  If funded properly, it can build up significant cash value. You take the investment risk however, and you can also lose cash value due to market down turns. Only a person who is a Registered Representative of the National Association of Securities Dealers and a licensed life insurance agent is able to present this product.
How much life insurance do I need?

How much you decide to own depends a lot on why you need it:

  • Maximum:  Most life companies will issue a face amount from 10 to 15 times your income depending on your age.  If you choose the maximum alternative, you receive the maximum advantage of life insurance to build and protect your estate, your family, and accumulate money in a tax favored manner.

  • Estate Taxes:  If you are a sole surviving spouse and have a large enough estate,  life insurance provides liquidity and the ability to transfer wealth to your children. It is an excellent tool, particularly combined with life insurance trusts.
  • Replace income, retire debt, and provide readjustment expenses.  How much of your income needs to be continued to your heirs and for how long, how much debt you want to retire, and how much is needed as a buffer will determine the amount of the death benefit.
  • Final expenses and readjustment fund.
  • Final expenses only.
  • The amount needed to fund a Buy-Sell plan for a business depends on  the valuation of the business.

  • Loan Collateral is determined by the size of the loan.
    One of the services a good agent provides is to help you examine your situation and decide your priorities.  Many times they are able to help you find the money needed within your budget to fund the life insurance you need.  
Why do I need life insurance?
  • You love some one who will experience an economic as well as emotional loss upon your death, your spouse and children for example.
  • You own a business in partnership with someone and want to pass that business intact to them if you die.
  • You owe someone money and use the life insurance as collateral for the loan.
  • You want to save money in a tax-favored way and keep it saved.