Life Insurance Solutions

Life insurance aims to provide a solution for those who seek income replacement, mortgage protection, estate planning, leaving a legacy, or burial expenses. However, if someone you love is dependent on you financially, you need life insurance.

Permanent policies(whole life) are typically the best option if you are looking for life-long protection, or an option to accumulate a tax-deferred cash value.

Most policies have a 31-day grace period wherein you can pay the premium with no penalty or interest. If you have a permanent policy, you can authorize the insurance company to draw your premium from your policy’s cash value. If you have a term policy and do not make the payment within this grace period, the insurance company will usually terminate the policy. 

Term insurance plans cover you for a term of one or more years, and it pays a death benefit only if you die in that term. You have bought yourself peace of mind that your beneficiaries will receive the death benefit if you should die within the term. Term policies typically offer the lowest monthly premium and are usually the best option if you have a limited budget or a temporary need. You can typically renew term policies for one or more terms even if your health has changed, however each time you do so; the premium may be higher.

The underwriting process is a method through which carriers assess your risk based on the medical exam (if needed), answers on the application, and databases search results (Medical Information Bureau) to conclude whether or not to approve, deny, or rate up a life insurance policy.

Most plans do require medical testing and charge premiums based on the level of risk they assign to you based on the testing. However, even if you are not in top health or have a serious health condition, there are still some options available with guaranteed issue plans, although this comes at the cost of a higher monthly premium and a lower death benefit.