David Lewis, Life Insurance Agent

Answer: To prepare for a meeting with an agent, you only need a valid driver's license or ID and a list of medications if you're taking them.

And if you have any other questions, feel free to contact me.

Answer: The most common mistake really depends on your situation. Most either buy way too little; the common suggestion is to purchase at least 10x your annual income.

Some in other situations buy more than they can afford, then end up lapsing the policy. Not good for anyone involved.

Answer: You can buy life insurance on anyone who has insurable interest, ex. a spouse, child/legal dependent, parent or grandparent, siblings, cousin, civil union, or domestic partners.

Answer: Depends on a number of factors, whether male or female, whether term insurance or permanent insurance, the amount of coverage, and health conditions.

Answer: You can get life insurance with a DUI on your record, but your options and rates depend heavily on how recently the incident occurred, the number of offenses, and your overall health profile. A single older DUI may have little impact, while a very recent conviction can lead to higher rates or a temporary denial.

How Insurers Look at DUI

Timeline: If your DUI happened within the last 12 to 24 months, many traditional insurers will postpone coverage until some time has passed. After 3 to 5 years, you are much more likely to qualify for standard rates.

Frequency: Multiple DUIs signal a higher behavioral risk and can result in an outright denial of traditional coverage.

Underwriting Focus: Companies check your motor vehicle record and look for signs of a broader substance abuse pattern, medical notes criticizing alcohol use, or related health complications.

Cost: A recent DUI typically prevents you from getting "preferred" or best-tier pricing, meaning you will pay higher premiums (a table rating) until the infraction ages off the insurer's primary look-back window.

Alternative Options

If you are denied traditional term or whole life insurance due to a very recent or multiple DUIs, alternative paths exist:

Guaranteed-Issue or Simplified Policies: These plans require fewer or no medical exams, though they usually offer lower face values and higher costs.

Working with an Independent Broker: An experienced broker can shop multiple insurance carriers anonymously to find a company with a more lenient look-back window for your specific timeline.

Answer: Yes, in many cases you can make changes to a life insurance policy after you buy it. Depending on the policy and carrier, you may be able to change beneficiaries, adjust coverage, add or remove riders, or convert a term policy to permanent coverage.

The important thing is to check the specific policy provisions before making any changes. And if you're considering replacing an existing policy, don't cancel the old policy until the new coverage is approved and in force.

Answer: A Modified Endowment Contract (MEC) is a life insurance policy that has been funded with premiums above the IRS limits under the 7-pay test. The policy can still provide a death benefit, but its cash-value tax treatment changes.

The biggest difference is that withdrawals and loans from a MEC are generally taxed income-first (LIFO), meaning gains come out before your principal. If you're under 59½, taxable distributions may also be subject to a 10% IRS penalty.

The death benefit generally remains income-tax-free to beneficiaries, assuming the policy is otherwise properly structured.

So, if you're using permanent life insurance for cash value, it's important to understand the MEC rules before making large premium payments. A life insurance professional or tax advisor can help you determine whether a policy is approaching MEC status.

Answer: A simple way I look at it is: match the term to the financial responsibility you’re trying to protect.

10 years can make sense for a shorter-term need. 20 years is often a good fit for families with kids or a mortgage. 30 years can make sense when you have young children and want income protection through most of your working years.

I wouldn’t automatically choose the cheapest option. The real question is, “How long would my family need my income if I wasn’t here?”

Once you answer that, choosing between 10, 20, or 30 years gets a lot easier.

Answer: You can usually qualify for more life insurance than just a multiple of your income, but there isn’t one universal formula.

Insurers typically look at things like your income, age, existing life insurance, debts, financial obligations, and the amount of coverage your family would actually need.

As a general starting point, many people look at roughly 5–15 times annual income, but that’s only a starting point. Someone making $75,000 a year could have very different needs depending on whether they have a mortgage, young children, a spouse who depends on their income, or significant debt.

I’d start with the question: “If I’m not here tomorrow, how much money would my family need to maintain their lifestyle and handle the bills?”

Then look at what you already have through work or personally and fill the gap from there.

And don’t assume the amount you qualify for is the amount you need. Those are two different questions.

Answer: You can verify a life insurance agent’s license pretty easily, and I’d recommend doing it before buying a policy.

If you’re in Virginia, check the agent through the Virginia SCC Bureau of Insurance license lookup. You can search by the agent’s name or license information and confirm that the license is active and that they’re authorized to sell life insurance.

You can also ask the agent for their license number. A legitimate agent should have no problem giving it to you.

I’d also go one step further and make sure the person you’re dealing with is actually appointed/authorized to sell the type of insurance they’re offering.

It only takes a few minutes to verify, and it’s worth doing when you’re trusting someone with an important financial decision.

Bottom line: Verify the license, ask questions, and don't feel pressured to buy just because someone is sitting in front of you.

Answer: Generally, no — life insurance companies don't use your credit score the way a bank or lender does when deciding whether to approve you.

When you apply for life insurance, the company is primarily looking at things like your age, health history, medications, tobacco use, occupation, and the amount and type of coverage you're applying for.

There are some situations where an insurer may obtain information related to your financial history, particularly for certain underwriting or high-dollar policies, but that's different from pulling your credit score to decide if you qualify.

So if you're worried that having less-than-perfect credit will automatically keep you from getting life insurance, that's generally not something you need to worry about.

The bigger question is whether the type of policy you're applying for fits your health, age, and coverage needs.

Answer: A life insurance illustration is basically a roadmap showing you how a life insurance policy is expected to perform over time.

When I look at one, I don't just look at the monthly premium or the death benefit. I pay attention to a few key things:

• Premium: How much are you paying and for how long?

• Death benefit: How much would your beneficiaries receive if you died?

• Cash value: If it's a permanent policy, how is the cash value projected to build?

• Guaranteed vs. non-guaranteed values: This is a big one. Some numbers are guaranteed by the policy, while others are based on assumptions and aren't guaranteed to happen.

• Policy year: Look at what the policy is projected to look like 10, 20, or even 30 years down the road—not just year one.

The biggest mistake I see is looking at the illustration and assuming every number shown is guaranteed.

An illustration is a projection, not a promise of future performance.

If you're buying permanent life insurance, make sure you understand what is guaranteed, what isn't, how long you have to pay, and what happens if you stop paying.

And if the illustration doesn't make sense to you, don't be afraid to ask the agent to slow down and explain it. You should understand what you're buying before you sign the application.

Answer: A primary beneficiary is the person who receives the life insurance benefit when the insured dies.

A contingent beneficiary is the backup if the primary beneficiary can’t receive it.

Example: You name your wife as primary and your children as contingent. If you die, your wife receives the benefit. If she can’t receive it, your children receive it.

Primary = first choice. Contingent = backup.

Answer: Not always. If a life insurance company denies a claim, first ask for the denial and the specific reason in writing. Review the policy and give the insurer a chance to reconsider.

If the denial appears incorrect or the claim involves a significant amount of money, speaking with an attorney who handles insurance disputes may be a good idea. You can also contact your state insurance department for help with a complaint.

The key is to understand why the claim was denied before deciding what to do next.

Answer: Moving to another state usually doesn’t cancel your life insurance policy. In most cases, your coverage continues as long as you keep paying your premiums.

If you move to another country, things can be more complicated. The policy may have restrictions depending on the insurer and the country you move to, so it’s important to contact the insurance company before relocating.

Bottom line: Moving doesn’t automatically mean losing your coverage, but always check with your insurer before making an international move.

Answer: A life insurance laddering strategy means buying multiple term policies with different coverage amounts and expiration dates instead of one large policy.

Example: Someone might have a $500,000 30-year policy, a $300,000 20-year policy, and a $200,000 10-year policy. As financial obligations like a mortgage and raising children decrease, portions of the coverage expire.

The goal is to have more coverage when you need it most while potentially reducing the total cost of insurance.

Answer: How does borrowing against a life insurance policy work?

With a permanent life insurance policy that builds cash value, you may be able to borrow money from the insurance company using the policy’s cash value as collateral.

For example:

If your policy has $30,000 in cash value, you may be able to take a policy loan of a portion of that amount.

A few things to understand:

• The loan accrues interest.

• You generally don't have to go through traditional bank underwriting.

• An unpaid loan reduces the death benefit your beneficiaries receive.

• If the loan grows too large, the policy could lapse.

• A lapse or surrender with an outstanding loan can create tax consequences.

So while policy loans can provide access to liquidity, they aren't free money.

The policy design, loan provisions, and how the loan is managed all matter.

That’s why clients should understand the mechanics before borrowing against their policy.

Answer: What happens to your life insurance policy if your agent retires or leaves the company?

Usually, nothing happens to the policy itself.

Your contract is with the insurance company, not your individual agent. As long as the policy remains in force and premiums are paid, your coverage generally continues according to the policy terms.

What can change is who services your policy.

You may be assigned another agent or service representative, or you can contact the insurance company directly.

But there's an important lesson for agents:

Selling the policy isn't the end of the relationship.

Beneficiary changes, policy reviews, loans, questions, and other service needs can come up years after the sale.

Being there for the client after the sale matters just as much as being there when they bought the policy.

Answer: Do you pay taxes when you cash out a life insurance policy?

Sometimes.

If you surrender a permanent life insurance policy for cash, the IRS generally taxes the amount you receive above your cost basis.

Example:

You paid $40,000 in premiums.

Your cash surrender value is $55,000.

The potential taxable gain is $15,000.

And if the policy has an outstanding loan, previous withdrawals, or other factors, the calculation can change.

So before surrendering a policy, don't just ask:

"How much cash can I get?"

Also ask:

"What will the tax consequences be?"

Your insurance company can provide the current surrender value and policy information, but a tax professional can help determine the actual tax impact for your situation.

Answer: What should you do with the money after receiving a life insurance payout?

Don't feel like you have to invest it immediately.

A life insurance payout is meant to provide financial support when your family needs it most.

A few priorities to consider:

• Handle immediate expenses

• Set aside money for near-term needs

• Pay down high-interest debt

• Rebuild your emergency fund

• Review your family's long-term goals

• Talk with qualified financial and tax professionals before making major decisions

The biggest mistake may be making a major financial decision simply because you feel like you need to "do something" with the money.

Take a breath. Understand your options. Then make a plan.

Answer: Do both spouses need life insurance, or is one policy enough?

It depends on the family's financial situation—but don't assume one policy automatically protects the whole household.

If either spouse dies, the surviving spouse may face:

• Lost income

• Childcare costs

• Mortgage or other debts

• Funeral expenses

• The cost of replacing household responsibilities

And this applies even if one spouse doesn't earn an income.

Life insurance isn't just about replacing a paycheck.

It's about protecting the financial value of the life being lost.

For many couples, that means looking at the financial impact of losing either spouse, not just the primary breadwinner.

Answer: Can you get life insurance if you're on disability or receiving SSDI?

Yes, you may be able to.

Being on disability doesn't automatically mean you can't qualify for life insurance.

The bigger question is usually why you're on disability and how the condition is being managed.

Underwriting may consider things like:

• Your diagnosis

• Treatment and medications

• How stable the condition is

• Your overall health

• The amount and type of coverage you're applying for

Depending on the situation, traditional, simplified-issue, or final-expense coverage may be available.

Receiving SSDI is not the same thing as being uninsurable.

The right approach is to look at the individual situation and find out what options are actually available.

Answer: Can you buy life insurance for your parents?

Yes — in many cases, you can.

You can potentially own the policy, pay the premiums, and name yourself or someone else as the beneficiary.

But your parent must know about the policy and consent to the coverage.

The bigger question is:

What financial problem are you trying to solve?

Funeral expenses?

Small debts?

Mortgage obligations?

Estate expenses?

Start with the need, then determine the coverage.

Answer: Do you need an agent who specializes in whole life insurance?

Not necessarily.

Most life insurance agents can help with whole life.

But experience matters when the situation is more complicated.

Older applicant?

Health conditions?

Final-expense coverage?

Limited budget?

In those cases, an agent who regularly works with these situations may have more options to consider.

The goal isn't to find an agent who only sells whole life.

It's to find an agent who understands the problem you're trying to solve.

Answer: What happens to your student loans if you die?

It depends on the type of loan.

Federal student loans are generally discharged when the borrower dies. Private student loans can be different, especially when a parent or someone else co-signed.

So should life insurance cover your student loans?

Not automatically.

The better question is:

Who would be financially affected if that debt didn't disappear?

If a parent co-signed a private loan—or your family could otherwise face a financial burden—life insurance may be worth considering.

Don’t guess about your coverage. Review your debts, identify who could be affected, and make sure your protection strategy matches your financial responsibilities.

If you’re unsure where you stand, let’s have a conversation and review your options.

Answer: Can you get life insurance with a felony conviction?

Possibly.

A felony doesn't automatically mean you can't get coverage.

Insurers may look at:

• What the conviction was for

• How long ago it happened

• Whether you're still on probation or parole

• Your current situation and overall risk

Probation can make traditional coverage much harder because some insurers will postpone or decline an application while you're still under supervision.

The important thing is not to assume you're uninsurable.

Different carriers have different underwriting guidelines.

If you have a felony or you're currently on probation and need life insurance, talk with an experienced agent before submitting applications. The right carrier matters.

If this is your situation, I’m happy to help you figure out whether it makes sense to apply now—or wait.

Answer: Should you get quotes from more than one life insurance agent?

You can—but more quotes don't always mean a better decision.

If you're comparing agents, don't just compare the premium.

Ask:

• Which companies do you represent?

• Why does this policy fit my situation?

• What happens if I don't qualify for the first option?

• What will the coverage actually accomplish?

A good agent should help you understand your options—not simply give you the lowest number.

Before you apply, make sure you're comparing the right coverage, not just competing quotes.

If your situation is difficult to insure, getting the right guidance can matter more than getting five different quotes.

Answer: If your health or habits change after your life insurance policy starts, do you have to tell your insurance company?

Usually, no.

Once your policy is issued and in force, you generally don't have to report every change in your health, weight, medications, or lifestyle.

That's one of the advantages of having coverage in place.

But there are important exceptions—especially if you're applying for additional coverage, exercising certain policy options, or making changes that require new underwriting.

The bigger lesson: Don't wait for your health to change before thinking about life insurance.

If you’re healthy today, that may be your best opportunity to lock in coverage based on today's insurability.

If you're unsure how a change could affect your existing policy, ask your agent before making assumptions.

Answer: Who is the policy owner, the insured, and the beneficiary?

It’s easy to mix them up.

Policy owner: Controls the policy—can typically make changes, pay premiums, and name beneficiaries.

Insured: The person whose life is covered by the policy.

Beneficiary: The person or entity that receives the death benefit when the insured dies.

They can be three different people.

For example, an adult child could own a policy, a parent could be the insured, and the adult child could be the beneficiary.

Before you buy life insurance, make sure you understand who has each role—and why.

If you're unsure how those roles should be structured for your situation, talk with a licensed agent before applying.

Answer: Live in a small town or rural area and need a life insurance agent?

You don't necessarily need an agent with an office down the street.

Look for someone who:

• Is properly licensed in your state

• Works with the type of coverage you need

• Has experience with situations similar to yours

• Offers phone, video, or in-person appointments

• Will explain your options instead of simply quoting a policy

Your state's insurance department can also help you verify an agent's license.

Distance matters less than finding someone who understands your situation and will actually be there when you need help.

Answer: Have a health condition and worried you won't qualify for life insurance?

Don't start by assuming you're uninsurable.

Start by finding an agent who regularly works with impaired-risk or hard-to-insure applicants.

Ask:

• Do you work with applicants who have health conditions?

• Which insurance companies do you represent?

• Do you know which carriers are more competitive for my situation?

• Will you review my health history before recommending where to apply?

The goal isn't to find an agent who says, "I can get anyone approved."

It's to find someone who can tell you honestly whether coverage makes sense—and what your options are.

If your health makes insurance complicated, the agent you choose can matter just as much as the policy you buy.