David De Anda, Life Insurance Agent
David De Anda
Northwestern Mutual Wealth Management
Life Insurance Agent Licensed in TX, AR, AZ, CA, FL, GA, MA, MD, MI, NC, NJ, OK, SC, VA and WA
15+ Years of Experience
Contact Details
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Location
Addison, TX
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Website
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David Can Help With:
About Me
Welcome! I'm David, a local life insurance specialist who understands the importance of protecting what matters most. From growing families to individuals planning ahead, I help people at every stage of life choose coverage with confidence.
Q&A with David De Anda
Do you have to pay taxes on life insurance benefits?
Answer: In most cases there are no Federal income taxes on life insurance. There are some exceptions and you should consult with your life insurance agent.
What is the most common mistake people make when buying life insurance?
Answer: Buying online without going over your needs with a insurance advisor. Everybody's needs are different and addressed personally.
How does the life insurance medical exam work and what do they test for?
Answer: The medical exam, not the questionnaire, usually includes a blood test, urine analysis, three blood pressure checks and weight. Sometimes it may require an EKG. The blood draw usually checks for nicotine in the system, HIV and illicit drugs. It also will check your basics like liver enzymes, cholesterol and A1C. I believe every company sets what their standard test are.
What happens if my life insurance company goes out of business?
Answer: It is always important to buy from a financially strong insurance company to reduce this risk. If a life insurance company goes into bankruptcy or our of business, the State that you live in Insurance Department will take over the company. You will still have coverage, it may be limited. The State will try to sell the policies to another company or take over the policies.
What is the cash surrender value of a life insurance policy?
Answer: Not a quick answer to this question. When you have an actual Whole Life policy it is a value that the policy is at on any given year if you were to surrender the policy. It starts at zero and grows to equal the death benefit at age 100. Whole life policy has three guarantees which are the death benefit, premiums and cash value. If a policy does not have these guarantees then they are basically a term policy.
A whole life policy from a good Mutual company will most likely earn dividends every year. Dividends are not guaranteed so you have to look at the company's dividend history and financial strenght. A dividend, in many cases, are used to purchase additional death benefits and that death benefit is paid in full and added to the base policy's death benefit. If the death benefit is growing, it also means the cash value has to grow to equal the death benefit at age 100. This cash value accumulation grows tax deferred and if needed, can be taken out in a policy loan or partial surrender tax free. You should consult with your insurance professional to make sure you do not create a taxable event.
Is whole life insurance the same as permanent life insurance?
Answer: Yes, whole life insurance is the same as permanent life insurance. It has three guarantees which are the premiums, death benefit and cash accumulation.
How does borrowing against a life insurance policy work?
Answer: Depends on what you mean by borrowing against a life policy.
If you have a life policy you can use it as collateral with a bank for a business loan. They will make sure that you do not let it lapse and if it were to, they would most likely call in the loan. If you were to die the loan gets paid first and the balance would go to your beneficiaries.
If you have a policy that has cash value built up you can get a policy loan. This is a loan from the company and you will pay interest on the loan. Same as above, if you were to die the loan gets paid first with the balance going to the beneficiares. Nice thing about this is there is no credit check or loan committie to go thru.
Why do I need life insurance if I am young and healthy?
Answer: Think about it, if you are old and unhealthy it will be difficult to find good coverage and if you do find it, it will be pricey. Always best to buy when you are young and you can lock in your insurability. I find it sad when I get calls from people who didn't "need" insurance and now want to buy it when they find out they are gravely ill.