Common Life Insurance Questions

Most policies include a grace period. Missing payments long-term can cause coverage to lapse, but options may exist depending on the policy type. Communication with your broker is important if circumstances change.

That it is too expensive or unnecessary. Most people are surprised by how affordable and flexible modern life insurance actually is.

Policies should be reviewed when major life events occur, such as marriage, children, buying a home, or career changes. Even without major changes, a periodic review is helpful.

Most life insurance policies cover death from natural causes and accidents. Some policies may also include additional accidental death benefits, depending on the coverage selected.

Regarding suicide, most life insurance policies include a suicide clause, which means that if death occurs by suicide within a specified period after the policy is issued, typically the first two years, the death benefit may not be paid. After this period, suicide is generally covered under the policy.

Specific terms vary by carrier and policy, which is why reviewing the details of your coverage is important.

The contestability period is the initial timeframe after a policy is issued, usually two years, during which the insurer can review and verify application details. After this period, the policy is generally secure.

Policies can be contested within a limited time if material information was misrepresented. This is why honesty and transparency during the application process are essential.

Often, yes. Many carriers specialize in different health profiles. Conditions like high blood pressure, diabetes, or asthma do not automatically disqualify you. The key is placing your application with the right carrier, and that is one of the many benefits you get when working with an independent broker.

Not everyone qualifies for every type of life insurance, but most people can qualify for some form of coverage.

Eligibility depends on factors such as age, health, lifestyle, occupation, and coverage amount. Some policies have stricter requirements, while others are designed to be more flexible.

For individuals with health concerns or past issues, there are often options available, including policies with simplified underwriting or modified benefits.

The key is working with a broker who understands how different carriers evaluate risk. As independent brokers, we can help identify the options that best fit your situation rather than applying blindly and risking unnecessary declines.

Even if traditional policies are not an option, there are often alternatives worth exploring.

Life insurance can be purchased at almost any age, including for children. Some policies are available as early as 14 days old, while others are designed for adults starting in their late teens.

For adults, many people qualify for life insurance starting around 18 years old, depending on the carrier and type of policy.

Getting coverage early often means:

• Lower premiums

• Better health ratings

• More options

• Long-term cost savings

Many families also choose policies for children to lock in insurability and provide long-term protection.

Life insurance is not about age alone. It is about protecting future insurability and planning ahead.

Employer provided life insurance is helpful but often limited.

Common issues include:

• Coverage amounts are usually low

• It may not follow you if you leave your job

• You typically cannot customize it

• It may not be enough to fully protect your family

Workplace coverage is best viewed as a supplement, not a complete solution.

Yes, and many people do. Personal life insurance ensures you stay protected regardless of job changes and allows you to choose coverage that fits your actual needs.

You choose your beneficiaries. This can include:

• A spouse

• Children

• Family members

• A trust

Payouts are typically tax free and paid directly to beneficiaries.

In many cases, approval can happen quickly, sometimes within hours or days. Some policies may require additional steps depending on coverage amount and health history, but we guide you through every step.

Life insurance should adapt as your life changes. Marriage, children, home purchases, and career changes are all reasons to review coverage. As brokers, we can help reassess and adjust when needed.

Full transparency allows your broker to place your application with the right insurance carrier from the start. Every insurer evaluates risk differently, so details about your health, lifestyle, occupation, and habits help us identify which companies are most likely to offer you the best terms.

Being honest does not automatically disqualify you. In many cases, it actually improves your outcome by avoiding delays, unnecessary declines, or policy changes later. Incomplete or inaccurate information can lead to higher premiums, denied claims, or even policy cancellation if discrepancies are discovered.

Transparency allows your broker to advocate for you, set realistic expectations, and ensure the coverage you choose performs exactly as intended when it matters most.

Because most people are not avoiding life insurance. They simply do not understand how life insurance works.

Our free educational session is designed to:

• Explain what life insurance is

• Review your options

• Answer any questions you may have

• Shop around for best rates that fit your budget

There is no pressure and no obligation. Education comes first.

As independent brokers, we work for you, not insurance carriers. This allows us to compare multiple top rated carriers, tailor coverage to your needs, and focus on guidance.

This is one of the most common concerns, and it comes from how life insurance is often explained.

Many modern life insurance policies include living benefits, meaning you can access a portion of your policy while you are still alive if you experience a qualifying illness or event.

Living benefits may allow access to funds in cases such as:

• Critical illness

• Chronic illness

• Terminal illness

These benefits can help cover medical costs, replace income, or reduce financial stress during difficult times. Not all policies include living benefits, which is why understanding your options matters.

Life insurance is not just about death. It is about protection during life as well.

If you never need to use your policy, that means it did its job quietly in the background. Much like car or home insurance, the value is in protection and peace of mind.

That said, some policies also offer features like cash value or living benefits, which can provide value beyond the death benefit.

Cash value is a savings component built into certain types of permanent life insurance policies, such as whole life and indexed universal life (IUL).

When you pay your premium, a portion goes toward:

• The cost of insurance coverage

• A cash value account that grows over time

This cash value grows inside the policy and is separate from the death benefit, though the two are connected.

This cash value can often be:

• Borrowed against

• Used for emergencies

• Used to supplement retirement income

• Used to help pay future premiums

Cash value grows tax deferred, meaning you do not pay taxes on the growth as long as it remains inside the policy. Depending on the type of policy, growth may be guaranteed at a fixed rate or linked to a market index (such as in an IUL) and is not the same as a traditional savings account. It is designed for long term planning, not short term spending.

In most policies, cash value becomes accessible after the policy has had time to build. This typically takes a few years, depending on how the policy is structured and funded.

Access is not immediate, and cash value is not intended for short-term use.

There are two main ways to access cash value:

1. Policy Loans

A policy loan allows you to borrow against your own policy. The insurance company lends you the money, using your cash value as collateral.

Key things to know:

• You are not required to repay the loan on a set schedule

• Interest accrues on the loan balance

• Any unpaid loan reduces the death benefit

• If managed properly, loans can be tax advantaged

You are borrowing from the insurance company, not directly removing your cash value.

2. Withdrawals

Withdrawals permanently remove money from the policy.

Important considerations:

• Withdrawals may reduce the death benefit

• Excessive withdrawals can impact policy performance

• Some withdrawals may trigger taxes depending on the policy

Withdrawals are typically used more cautiously than loans.

Who Pays the Loan Back?

You do, but repayment is flexible. You can repay the loan over time, choose not to repay it, or allow the balance to be deducted from the death benefit. Many people use policy loans without repayment, understanding the impact on their beneficiaries.

What If a Loan Is Not Repaid?

Unpaid loans reduce the death benefit and continue to accrue interest. If the balance grows too large, the policy could lapse, which is why proper guidance and ongoing monitoring are important.

Cash value may be used for emergencies, supplemental retirement income, major life expenses, or to help cover premiums later in life. Each use should be carefully planned to protect the policy.

No. Cash value is not meant for frequent withdrawals or short-term use. It grows over time and is tied to the structure of the insurance policy, making it a long-term planning tool rather than a traditional savings account.

Mortgage protection is specific type of term life insurance designed to help cover your mortgage if you pass away.

The goal is to:

• Prevent your family from losing the home

• Reduce financial stress during an already difficult time

• Provide funds to pay off or help pay the mortgage

Coverage can be customized based on:

• Mortgage balance

• Term length

• Budget

Mortgage protection is not required, but many homeowners choose it for peace of mind.

Compared to Term Life Insurance

Term life provides protection for a specific period but does not build cash value. An IUL provides lifetime coverage and the potential to build long term cash value.

Compared to Whole Life Insurance

Whole life typically offers guaranteed growth at a fixed rate. IULs offer growth potential tied to market performance, which can be higher over time, though not guaranteed.

Compared to Traditional Investing

IULs are not investments. They are insurance products with built-in protection. Unlike investments, IULs:

• Do not lose value due to market downturns

• Offer tax advantaged growth

• Provide a death benefit

Waiting typically increases cost and limits options. Locking in coverage earlier often means better pricing and more flexibility later.

Tomorrow is never promised, that is why the best time is now.

In most cases, yes. Many policies cover death worldwide. Certain exclusions may apply depending on the policy and circumstances, which is why reviewing details matters.

Many term policies include a conversion option that allows you to convert to permanent insurance without new medical underwriting. Conversion options vary by policy and carrier.