Mary Brown, Life Insurance Broker

Answer: Term life: Covers you for a set period (10, 20, or 30 years) and is usually the most affordable option.

Whole life: Covers you for life and builds cash value, but costs more.

Answer: One of the most common mistakes is waiting too long to buy coverage. Life insurance generally costs less when you’re younger and healthier, and health changes can make coverage more expensive or harder to obtain later.

Another common mistake is buying too little coverage without considering future expenses, debts, income replacement, and family needs.

Answer: A good rule of thumb is to choose a death benefit that covers 10–15 times your annual income, plus any major debts, final expenses, and future costs such as a mortgage, college tuition, or income replacement for your family.

Answer: Yes. Apply for your new policy first and wait until it’s active before canceling your current one. This helps prevent any gap in coverage. Be sure to compare coverage, cost, and benefits, not just the premium.

Answer: It depends on your divorce agreement and policy ownership. You may need to update your beneficiary, keep coverage to meet court-ordered obligations, or transfer ownership. Review your policy after a divorce to ensure it reflects your current wishes.

Answer: A life insurance rider is an optional add-on that provides extra benefits or protection. Popular riders include accelerated death benefit, waiver of premium, child term, and accidental death. The best riders depend on your needs, budget, and long-term goals.

Answer: The free look period is a window typically 10 to 30 days, depending on your state during which you can review your new policy and cancel it for a full refund if it doesn’t meet your needs. It’s a risk-free opportunity to make sure the coverage is right for you.

Answer: Life insurance can cost as little as $15–$30 per month for healthy younger adults, while others may pay more depending on age, health, tobacco use, coverage amount, and the type of policy. The best way to know your cost is to get a personalized quote.

Answer: Corporate governance helps ensure a life insurance company is financially stable, well-managed, and accountable, giving policyholders confidence that claims will be paid.

Answer: Yes. Many term life and fully underwritten whole life policies have no waiting period and provide coverage as soon as the policy is approved and in force. Waiting periods are more common with guaranteed issue life insurance.

Answer: If you stop paying whole life insurance premiums, the policy may lapse if there’s not enough cash value to cover the payments. If sufficient cash value has built up, it may be used to keep the policy in force, depending on the policy’s provisions.

Answer: A graded death benefit is a feature on some life insurance policies where the full death benefit isn’t available during the first 2–3 years. If the insured dies during that period from natural causes, beneficiaries typically receive the premiums paid plus interest. Accidental death is usually covered for the full benefit from day one.

Answer: A life insurance medical exam is usually a quick health assessment that includes your height, weight, blood pressure, and blood and urine samples. These tests help insurers evaluate your overall health, including cholesterol, blood sugar, nicotine or tobacco use, certain medical conditions, and sometimes prescription drug use, to determine your eligibility and premium.

Answer: If you outlive your term life insurance policy, the coverage simply ends and no death benefit is paid. Depending on the policy, you may have the option to renew it, convert it to a permanent policy, or purchase a new policy.

Answer: There is generally no strict deadline to file a life insurance claim, but it’s best to file as soon as possible. Delaying the claim can slow the payout, especially if additional documents are needed.

Answer: Most employer life insurance is a great benefit, but it often isn’t enough. Coverage is usually limited, may end if you leave your job, and may not fully protect your family’s future financial needs. If you have a spouse, children, or significant debts, an individual life insurance policy can help fill the gap.

Answer: Choose a life insurance provider with a strong financial rating, transparent pricing, clear policy terms, excellent customer service, and a reputation for handling claims fairly. A trustworthy company will put your needs first, explain your options honestly, and avoid high-pressure sales

Answer: A licensed life insurance agent compares multiple plans and carriers to find coverage that fits your needs and budget. They explain your options, help you avoid paying for unnecessary coverage, and recommend a policy that provides the best value for your financial situation.

Answer: Survivorship life insurance covers two people and pays a death benefit after the second insured passes away. It’s often used in estate planning to help cover estate taxes, preserve family assets, and provide an inheritance for beneficiaries.

Answer: Yes. In general, life insurance premiums increase with age because the risk to the insurer rises over time. Buying a policy while you’re younger and healthier can help you lock in a lower rate for the life of the policy.

Answer: When you die, your beneficiaries typically receive the policy’s death benefit, while the cash value stays with the insurance company. However, some policies offer riders or options that may allow both to be paid, depending on the policy terms.

Answer: A life insurance company’s investment portfolio helps support its ability to pay claims, keep premiums stable, and grow cash value in certain permanent life insurance policies. Choosing a financially strong insurer can provide greater long-term security.

Answer: Simplified issue life insurance requires no medical exam but does ask health questions. Guaranteed issue life insurance requires no medical exam and no health questions, making approval nearly guaranteed, though premiums are typically higher and coverage amounts are lower.

Answer: Yes. A previous denial doesn’t automatically prevent you from getting life insurance. Different insurance companies have different underwriting guidelines, and you may qualify with another carrier or for a simplified issue or guaranteed issue policy.

Answer: Cash value life insurance is permanent coverage that includes a savings component. Part of your premium builds cash value over time, which grows tax-deferred and can be accessed through loans or withdrawals while you’re still living, subject to the policy’s terms.