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Frequently Asked Insurance Questions

Your Health & Wealth Agent Help Center

Do I need to buy life insurance?

If God forbid anything happens to you:

  • Would your dependents be able to maintain their standard of living?

  • Would they be able to pay off the outstanding medical costs of your illness?

  • Can they cover rent, mortgage payments, and other bills?

  •  Would they be able to cover your funeral costs?

If you answered NO to any of these questions, then you may consider contacting us for a free needs analysis to help you decide what type of life insurance meets your needs and budget.

Can I afford to buy life insurance?

Life insurance premiums vary, depending on your needs, age, and health status.  As life insurance brokers, we are committed to helping you identify a policy that meets your needs and budget. Bear in mind that life insurance costs will only get higher as you get older. Moreover, life is not guaranteed. Better to be covered now and not need it than to need it and not be covered. 

How much life insurance do I need?

To figure out how much insurance you need, you will need to consider the following - your income, age, health status, who depends on you, your current cost of living, life expectancy, do you have children, the ages of the children, do you have a spouse, does your spouse work, if yes what is the combined household income.

Our free needs analysis will help you determine how much insurance you need.

Which company is the best for life insurance?

It is not a matter of which company is the best, but which company offers the type of life insurance product that best meets your needs and budget. Most of the products are similar across providers. Our partners are some of the best in the industry and we work on your behalf to find a product that best meets your needs and gives you the best bang for your buck.

When is it too early or too late to buy life insurance?

It is cheaper to buy life insurance at a young age. The younger the better. For parents of young children, purchasing life insurance from birth ensures cheaper premiums. Whole life and Universal life insurance accumulate a cash value that can buy your child's first car, pay for a college education without loans, and set them up for financial stability as soon as they turn 18 or are able to take over their account. 

No matter your age, you should speak with an insurance broker like us to help you find the right policy that meets your need and budget.

Which life insurance is better - Term life or whole life?

It depends on your needs and budget. Term life is cheaper but only lasts a stated period, after which coverage terminates. It’s more like a rental. You are entitled to benefits for the years you signed up for, usually 10, 20, or 30. There is no cash value, and your premiums paid over the covered years are not refundable unless you buy term life insurance with a return of premium or cash-back option. Some term life insurance products also offer living benefits.  

On the other hand, whole life and universal life insurance policies cost more but last for your lifetime or up to 100 (121 in some cases), whichever occurs first. They also accumulate cash value. As long as your premiums are paid, coverage lasts until death. This is comparable to owning your home. You can make it your forever home or sell it and do what you want with your money if you no longer want to live there. In the same way, you can surrender your whole life or universal life policy for the cash value if you no longer want it or need the cash.

Can I take money from my life insurance policy while I am still alive?

Yes. Life insurance is not for death benefits only. You can get living benefits from certain types of life insurance products. These benefits include critical illness, chronic illness, terminal illness, and disability.

Can I borrow money from my life insurance without penalty?

Yes, you can borrow money from your life insurance if you have a whole life or universal life insurance. There is no penalty for taking a loan from your life insurance policy. You have the option to pay the loan back if you want to. There is no obligation to pay it back.  

Why do I need an annual policy review/audit?

Consumers are speaking and insurance companies are listening! Insurance companies are competing for your business. as a result, existing products are being padded with additional benefits, and new products are being introduced to keep up with consumer demand. 

An annual audit gives you the opportunity to review your current policy, and evaluate your current needs to make sure you are adequately protected especially if there has been a major change in your life. Marriage, the birth of a child, and the purchase of a new home are a few reasons you may need additional coverage.

What is Mortgage Protection Insurance and why do I need it?

Mortgage protection is the insurance that protects your family from being thrown out in the streets in the event of a death or disability that results in your family no longer being able to pay the mortgage. It can be structured to pay off the mortgage, as well as replace your income for a specified period, usually 6 to 24 months.

Research has shown that one in three homeowners do not have the right insurance coverage. People generally think that home owner's insurance protects them. The truth is it doesn't. Homeowner's insurance only protects the property when there is damage to the property. The bank also takes out insurance that protects their investment in the home in case you default on your mortgage.

Mortgage protection is the ONLY insurance coverage that truly protects your family and ensures they are not left stranded. 

There are many ways to structure a mortgage protection policy, so be sure to work with a licensed Insurance Broker to ensure that it is properly structured to meet your family's needs and budget.

Why should I buy insurance through a Broker rather than a captive agent/agency?

If you're considering changing your life insurance coverage or have no coverage, NOW is the time to take action!

Why work with an independent broker instead of a captive agent/agency? 


Independent Brokers like us are not affiliated with any one insurance company. We partner with multiple A-rated insurance carriers to provide top-rated, customized products at very competitive rates without the hassle of shopping around. We do the shopping around for you in-house and customize a package that meets your needs and budget. Because we partner with multiple carriers, we are not under any pressure or obligation to get you into any specific carrier's products. We focus on ensuring that your family is adequately protected at a budget that makes sense for you.


Death Benefit: The amount of money paid to the beneficiaries upon the insured person's death. It is the main purpose of a life insurance policy and provides financial support to the loved ones left behind.
Short Story illustration:

Emily was a 34-year-old single mom with three young children who wanted to ensure her family's financial stability in case anything happened to her. She was in fairly good health and was able to purchase a $250,000 life insurance policy. Tragically, Emily passed away unexpectedly. Her grieving family received the death benefit from the insurance company on behalf of her children, which helped them cover funeral expenses, pay off debts, and maintain the children's standard of living during this difficult time. There was also enough money to set aside for her children's college education.

Premium: The regular payment made by the policyholder to the insurance company to keep the life insurance policy in force or active. It can be paid monthly, quarterly, biannually, or annually. If you are struggling with paying your premium, do not cancel your policy without speaking with your broker.
Short Story illustration:

David had been paying his life insurance premiums faithfully for many years. However, due to a financial setback, he struggled to make the payment for a couple of months. Worried about losing his coverage, he contacted his agent and explained his situation. Understanding his predicament, the agent worked with the insurance company to customize a more manageable payment plan for David, making it possible for him to keep his coverage and continue to protect his family's financial future.

Beneficiary: The person or entity named in the life insurance policy to receive the death benefit upon the insured person's passing.
Short Story illustration:

Sarah was a devoted grandmother who adored her grandchildren and wanted to leave a lasting legacy for them. She named them as beneficiaries in her life insurance policy. Unfortunately, Sarah fell ill and passed away surrounded by her family. During her last hours, she expressed how she was at peace, knowing that her grandchildren would receive the financial support to pursue their dreams. The insurance company distributed the death benefit among her beloved grandchildren, helping secure their education and future endeavors.

Cash Value: The savings component of a permanent life insurance policy that accumulates over time and can be accessed by the policyholder during their lifetime.
hort Story illustration:

Michael has had a permanent life insurance policy with cash value accumulation for several years. He has been paying the premiums diligently but hasn't noticed how much cash value his policy has accumulated. During his annual review with his independent agent, he was pleasantly surprised to discover that his policy had built up a significant cash value. Not long after, he needed funds for a down payment on a new home. Michael contacted the insurance company and utilized some of the accumulated cash value to make the down payment for his new home. This allowed Michael to achieve his dream of homeownership while maintaining his life insurance coverage.

Term Life Insurance: A type of life insurance that provides coverage for a specific term, usually 10, 20, or 30 years, comparable to renting a house rather than owning it. If the insured person passes away during the term, the beneficiaries receive the death benefit.
Short Story illustration:

Mark was a young professional who recently got married. He wanted to ensure his wife would be financially secure if anything happened to him. He decided to purchase a $500,000 term life insurance policy for 20 years since he had a limited budget. A few years into the policy, Mark unexpectedly passed away in a tragic accident. His wife contacted the insurance company and received the full death benefit. The funds helped her cover funeral costs and pay off Mark's debt and the mortgage. Having the funds available allowed her to grieve without the stress of how to survive without his income.

Underwriting: The process through which the insurance company evaluates an applicant's risk factors, such as health, lifestyle, and occupation, to determine eligibility for coverage and the premium amount.
hort Story illustration:

Rebecca wanted to secure life insurance coverage to protect her family. She completed the application, and the insurance company initiated the underwriting process. They requested her medical records and also conducted a review of her medications. As a result, they discovered that Rebecca had a pre-existing medical condition. However, the insurance company determined that her condition was well-managed and did not pose a high risk. Rebecca was then approved for coverage.

Policy Loan: A feature available in certain types of life insurance policies that allows the policyholder to borrow against the policy's accumulated cash value.
hort Story illustration:

Karen was aware of the benefits of cash value accumulation. As a result, she had been diligently building up cash value on her permanent life insurance policy for many years. She found herself facing a financial emergency and needed funds quickly. Instead of seeking a traditional loan, Karen explored the policy loan option offered by her insurance company. She contacted them, completed the necessary paperwork, and was approved for a loan using the cash value as collateral. This allowed her to address her urgent financial needs without disrupting her long-term financial goals.

Surrender Value: The amount of money available to the policyholder if they choose to terminate their life insurance policy before the end of its term.
Short Story illustration:

Robert had a life insurance policy that accumulated cash value. He considered surrendering the policy to access the accumulated cash when faced with a difficult financial situation. He contacted the insurance company to inquire about the surrender value. They explained the process and told him the amount he would receive upon surrendering the policy. After carefully evaluating his options, Robert surrendered the policy, receiving the surrender cash value, which provided him with much-needed financial relief during a challenging period.

Grace Period: A specified period after the premium due date during which the policyholder can make a premium payment without the risk of the policy lapsing.
hort Story illustration: 

Lisa had been consistent with her life insurance premium payments, but one month, she forgot to pay her premium by the due date. Worried about her coverage, she called the insurance company to explain the situation. The representative informed her that her policy had a grace period of 30 days. Her coverage would remain intact as long as she made the payment within that timeframe. Grateful for the grace period, Lisa paid promptly, ensuring her life insurance protection continued.

Convertible Term Insurance: A type of term life insurance policy that allows the policyholder to convert their policy into a permanent life insurance policy without undergoing additional underwriting or providing evidence of insurability.
hort Story illustration: 

Alex purchased a convertible term life insurance policy when starting his career. As the years passed and his financial situation improved, he wanted the long-term benefits of a permanent life insurance policy. Thanks to the convertible feature in his policy, Alex contacted the insurance company and expressed his desire to convert his term policy into a permanent one. Without needing a new application or medical exams, he converted his policy, ensuring lifelong coverage and financial protection for his loved ones.

Always remember....

Life insurance is a vital part of setting your family up for a stable financial future. Working with licensed Insurance Brokers like us will help you identify your needs, choose the right insurance products that meet your needs and budget, and be empowered to take good care of your family now, and build generational wealth and a legacy for your family's future. One great thing about the Insurance industry is that there are options for everyone. Different products, pricing, and services are out there for each individual to choose from. 


Contact us for a free no obligations needs analysis. You will be amazed at how affordable life insurance can be, and how much you have missed out on by not acting sooner. 

Still have questions about our insurance products or need help finding the right strategy to protect your income and build financial stability for your family? Click the "Contact Us" button below to send us an email and we’ll get back to you ASAP.

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