The purpose of life insurance is to provide a financial benefit in the event of the death of the insured.  Some policies provide cash benefits while the insured is still alive to help pay for chronic, critical and terminal illnesses as well.

It depends on your situation.  If you don’t have anyone that depends on your income, then you might justify not having a policy.  However, if you have loved ones that depend on you income, or if you plan on having a family in the future, you need life insurance.

Life insurance is a contract between the applicant and the insurance company.  The insurance company agrees to pay certain benefits in the event of the applicant’s death or certain illnesses while still living.  In turn the applicant agrees to pay the stated premium.

The most well-known type of life insurance that  people are familiar with is Term insurance.  This is the most simple to understand the typically the cheapest. It is

It’s a simple online application.  Most of the time if you are in good health, there are no medical exams required.  However, this will be determined by the underwriters after your application is received.

The death benefit is what the insurance company will pay the beneficiary in the event of the death of the insured.

A life insurance beneficiary can be almost anyone or any entity, including individuals, trusts, charities, or even the policyholder’s estate. The policyholder has the flexibility to choose who will receive the death benefit. 

When a permanent policy is ‘fully paid up’, that means that enough premium has been paid such that no future premiums will be due to keep the policy in force.  The future premiums are deducted from the cash value of the policy.

This is the process that the insurance company goes through to determine the risk they are taking on while insuring you. They take into consideration your health history, occupation and driving record among other things.  This process is what will determine your ability to get coverage and what the premium will be.

Most applications now go through without the need for a medical exam provided the applicant is in good health.  Part of the application process includes a medical questionnaire.  Depending on the answers to that questionnaire, they insurance company may decide that they need to order a medical exam including blood, urine or other tests.

When someone receives a life insurance payout, the good news is that it’s usually tax-free, which means they won’t have to worry about taxes on that money. If you have a permanent life insurance policy, the cash value grows without being taxed right away. However, if you decide to tap into that cash, you might have to pay taxes depending on how you take the distribution.

These are benefits you can move forward in time (before death) under certain conditions.  For example, if you’ve been diagnosed with a terminal illness you can take some of the death benefit early to help pay for medical bills before you pass.  Some policies also have what are called ‘living benefits’ that allow you to do the same for chronic or critical illness diagnoses.

Yes, provided you have their consent and an insurable interest in that person.  Insurable interest in a person exists when a party would experience financial loss or hardship due to the death of that person. This interest is typically established through a close relationship like marriage, family ties, or a financial dependency. For example, a spouse, child, or business partner might have an insurable interest in another person if their death would cause a significant financial impact. 

IUL is a type of permanent life insurance.  The cash value of the account is tied to an index that allows you to participate in market gains (subject to participation and cap rates), but protects from loss (with a ‘floor’).  *it’s important to note that the money is not directly invested in the market. rates), but protects from loss (with a ‘floor’).  *it’s important to note that the money is not directly invested in the market.