Life insurance questions, answered plainly

Term life covers you for a set number of years, often 10, 20 or 30. If you pass away during the term, it pays a death benefit. It doesn't build cash value, and it usually costs less.

Whole life is permanent coverage. It lasts as long as premiums are paid and can build cash value over time. It usually costs more.

Universal life is another kind of permanent coverage with more flexible premiums. How it works varies a lot by policy, so we'll go over the details of any policy with you.

Life insurance death benefits are generally not subject to income tax, but there are exceptions. We're not tax advisors, so please ask a tax professional about your situation.

Usually a spouse, children, other family members, a trust or a charity. You can often name backup (contingent) beneficiaries too.

It's a good idea to review your beneficiaries after big life changes like a marriage, divorce or new grandchild. For questions about estates or trusts, talk with an attorney.

There's no single right number. People often think about a few things: income their family would need for some years, debts like a mortgage, future costs like college, and final expenses.

Then they subtract savings and any coverage they already have. We'll talk it through with you. The choice is always yours.

The main things are your age, your health, tobacco use, the amount of coverage and, for term life, how many years the term lasts. Each insurance company weighs these a bit differently, which is one reason we compare several.

Some term policies allow it, often without new health questions, but only within certain time limits. Not every policy offers this. We'll point out whether a policy has this feature and what the deadlines are.

It depends on the policy. Some policies don't require a medical exam; others do. Most ask health questions either way. Answer them fully and honestly, since wrong answers can cause problems with a claim later.

It varies by insurance company and policy. Some decisions come quickly; others take a few weeks if the insurer needs an exam or medical records. Coverage starts only once the policy is approved and in force.

With term life, the coverage usually ends after a grace period. With permanent life, it depends on the policy. Some cash value may be used to keep coverage going for a while, or you may get a reduced amount of coverage or a cash value payout.

If money gets tight, call us before you stop paying. There may be options.

Not necessarily. Replacing a policy isn't always the right move. A new policy may cost more at your age now, and it can come with new waiting periods. We'll review your current policy with you first.

If you do switch, don't cancel the old policy until the new one is approved and in force.

No. There's no fee for our help. Insurance companies pay agents when a policy is issued. Prices are set by the insurance company, not by us.

We're Licensed Independent Insurance Agents/Brokers in Florida, Alabama, Arizona, Michigan, Maine, North Carolina, South Carolina, Indiana, Ohio and Montana. We help clients by phone, and in person near The Villages, Florida.