Question 1

How much life insurance do I need?

Accepted Answer

A common rule of thumb is 10-12 times your annual income, but the right amount depends on your debts, income replacement needs, number of dependents, and future expenses like college tuition. An independent broker can help you calculate the right amount for your situation.

Question 2

What is the difference between term and whole life insurance?

Accepted Answer

Term life insurance provides coverage for a set period (10, 20, or 30 years) and pays a death benefit if you die during that term. It is typically the most affordable option. Whole life insurance provides permanent, lifelong coverage and builds cash value over time, but premiums are significantly higher.

Question 3

Can I get life insurance without a medical exam?

Accepted Answer

Yes. No-exam life insurance policies are available including simplified issue term life, final expense insurance, and guaranteed issue policies. These typically have higher premiums than fully underwritten policies but offer faster approval, often within 24-48 hours.

Question 4

What factors affect my life insurance rates?

Accepted Answer

Life insurance rates are based on your age, health history, tobacco use, family medical history, occupation, hobbies, and the amount and type of coverage you choose. Getting quotes from multiple carriers through an independent broker ensures you find the best rate for your risk profile.

Question 5

What is an independent insurance broker?

Accepted Answer

An independent insurance broker works with multiple insurance carriers rather than being tied to a single company. This allows them to compare policies and rates across many insurers to find the best coverage and price for each individual client.

Question 6

What is a Medigap or Medicare supplement plan?

Accepted Answer

Medigap (Medicare Supplement) insurance is sold by private insurance companies to help cover costs that Original Medicare does not pay, such as copayments, coinsurance, and deductibles. Plans are standardized and labeled A through N, with Plan G being one of the most popular options for new enrollees.

Question 7

What does disability insurance cover?

Accepted Answer

Disability insurance replaces a portion of your income (typically 60-70%) if you become unable to work due to illness or injury. Individual disability insurance policies offer more comprehensive protection and portability compared to group coverage provided through an employer.

Question 8

When should I buy life insurance?

Accepted Answer

The best time to buy life insurance is when you are young and healthy, as premiums are lowest. Key trigger events include getting married, having children, buying a home, starting a business, or when others depend on your income. Rates increase with age, so the sooner you apply, the less you will pay.

What Is The Face Amount Of A Life Insurance Policy?

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