What is life insurance?
Life insurance is an agreement between you and an insurance company. You pay a premium, usually monthly. If you die while the policy is active, the company pays a tax-free lump sum, called the death benefit, to the people you chose.
Who needs it?
If someone would struggle financially without you, you probably need it. That usually means:
- Parents with children at home
- Couples who share a mortgage or rent
- Anyone with co-signed debt, such as private student loans
- Business owners with partners or key staff
- People who want to cover funeral costs so family does not have to
What does it cover?
Most causes of death are covered, including illness and accidents. Your family can spend the payout on anything: the mortgage, childcare, college, everyday bills.
The main exceptions are death by suicide in the first two years and claims where the application left out something important. Answer every question honestly and exclusions are rarely a problem.
Term or whole life?
| Feature | Term life | Whole life |
|---|---|---|
| Lasts | A set period, often 10 to 30 years | Your whole life |
| Cost | Lowest price for the coverage | Several times more than term |
| Cash value | None | Builds slowly over time |
| Best for | Covering the years your family depends on your income | Lifelong needs and estate planning |
Most families we work with choose term. It covers the expensive years for the least money.
How much do I need?
A common starting point is 10 to 12 times your yearly income, plus enough to clear the mortgage. A broker can fine-tune that in a ten-minute call.
Common questions
Do I need a medical exam?
Not always. Many carriers now approve healthy applicants using an online health questionnaire and records checks. If an exam is needed, a nurse comes to you and the carrier pays for it.
How long does approval take?
No-exam policies can be approved in a few days. Policies that need an exam usually take three to five weeks.
What does a broker cost me?
Nothing. The insurance company pays the broker. Your price is the same as buying direct.
Can I change my policy later?
Yes. Many term policies can be converted to permanent coverage, and you can always apply for a new policy if your needs change.
Still have questions? Call (470) 555-0142 or send us a note.