Life Insurance Frequently Asked Questions

 Yes—if anyone depends on your income or care (spouse, children, aging parents, business partners), life insurance helps protect them financially if you pass away. 

 A common rule is 7–10 times your annual income, but it’s better to calculate based on debts, income replacement, education costs, and final expenses .

•  Term: Covers you for a set period (10–30 years); lower cost
• Whole life: Lasts your entire life; builds cash value but costs more

 It’s optional. Some parents choose it for guaranteed future insurability or to cover funeral costs. Others prefer to invest elsewhere .

 Not always. Some policies offer no-exam coverage, but may cost more or have lower limits. Traditional policies often require a basic health screening .

Yes—permanent policies like whole or universal life can build cash value over time, which you can borrow against or use later 

 You may lose coverage. Some policies offer a grace period or allow reinstatement, but it’s best to stay current to avoid gaps .

 Generally, death benefits are tax-free to beneficiaries. However, cash value withdrawals or estate taxes may apply in certain cases. 

 Yes—many policies allow riders, upgrades, or conversions (e.g., term to whole). Review your policy regularly as life changes.

From a licensed advisor (like us!), online platforms, or directly from insurers. Working with a trusted advisor ensures the policy fits your goals .

False.  The best time to buy is when you're young and healthy—rates are lower and coverage is easier to qualify for . 

False.  Most people overestimate the cost by 3x. A healthy 30-year-old can get term coverage for under $20/month . 

False.  Even without dependents, life insurance can cover debts, funeral costs, or leave a legacy to loved ones or charities .

The truth is, Employer plans often offer limited coverage (1–2x salary) and don’t follow you if you change jobs.

False.  Their contributions (childcare, household management) have real economic value. Replacing those services is costly .

Actually, Death benefits are generally tax-free to beneficiaries. Some exceptions apply for estate taxes or cash value policies.

Maybe but, Waiting means higher premiums and potential health issues that could limit coverage or increase costs. 

False.  Many policies offer no-exam options, especially for younger or healthier applicants. These can be fast and affordable.

Not necessarily.   Term is great for temporary needs, but whole life builds cash value and offers lifelong protection—ideal for legacy planning.

False. Permanent policies can be used for retirement planning, emergency funds, or borrowing against cash value while you're alive.