FREQUENTLY ASKED QUESTIONS
What is life insurance?
Life insurance is a contract between an individual and an insurance provider, ensuring that a specified amount of money is paid to beneficiaries upon the insured's death, providing financial security during difficult times.
How do I choose a policy?
Choosing a life insurance policy involves assessing your financial needs, evaluating different policy types, and considering factors like coverage amount, premium costs, and your long-term financial goals to find a suitable option.
What’s the difference between Term, Whole Life, and IUL?
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Term: coverage for a set period (10–30 years). Lowest cost, no cash value.
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Whole Life (WL): lifetime coverage with fixed premiums and guaranteed cash value.
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Indexed Universal Life (IUL): lifetime coverage with flexible premiums and potential cash value growth tied to an index (with a floor and caps). Good for people who want protection and a long-term savings bucket.
How does an IUL grow?
Am I invested in the stock market?
No. With IUL your cash value doesn’t go into the market. The insurer credits interest based on an index (e.g., S&P 500) using caps/participation rates and a floor (often 0–1%) so negative index years don’t credit losses.
How much life insurance do I need?
A quick rule is 10–15× your annual income, or we can use the DIME method (Debt + Income replacement + Mortgage + Education). We’ll show two budget-friendly options (often 5–10% of monthly net income) so you can choose what feels sustainable.
Can I get coverage if I have health issues? What’s underwriting like?
Usually yes. Underwriting looks at age, build, health history/meds, driving, and lifestyle. Some policies are simplified issue (no exam). Typical decisions take 24 hours to 3 weeks depending on records. We guide you through requirements and keep you updated.
How fast can I start, and what do I need to apply?
Most people can complete an e-application in 5–15 minutes. Bring a valid ID, SSN/ITIN, basic health info, beneficiary details, and a payment method (for drafts). Some cases require a brief phone interview or a quick exam.
Can I open a policy for my child?
Do parents need coverage too?
Yes, juvenile policies are common. A parent/guardian is typically the owner. For larger amounts, carriers often expect the parent(s) to be adequately insured first (to keep coverage proportionate). We’ll size the face amount to fit the rules and your budget.
What is an annuity, and who is it right for?
An annuity is an insurance contract for protected growth (fixed/MYGA or fixed-indexed) and/or guaranteed income you can’t outlive. It’s useful if you want principal protection, steady income later, and tax-deferred growth. Annuities can have surrender periods and withdrawal limits.
Can I access my cash value and are withdrawals/loans taxable?
With permanent policies (WL/IUL) you can usually access cash value via withdrawals or loans. Those reduce values/benefits and loans accrue interest; mishandling can cause a policy to lapse. Tax treatment depends on the policy design (e.g., avoiding MEC status) and your situation, your tax professional can advise.