What it is: Coverage for a specific time period (typically 10, 20, or 30 years). If you pass away during the term, your beneficiaries receive the death benefit. If you outlive the term, coverage ends.

Cost Example: A healthy 35-year-old might pay $25-40/month for $500,000 in 20-year term coverage.

What it is: Permanent coverage that lasts your entire lifetime. Includes a cash value component that grows tax-deferred, which you can borrow against or surrender.

Cost Example: The same 35-year-old might pay $200-400/month for $500,000 in whole life coverage.

What it is: Flexible permanent coverage with adjustable premiums and death benefits. Cash value grows based on current interest rates.

Cost Example: Approximately $100-250/month for $500,000 in coverage.

Quick Coverage Calculator Formula

Additional expenses to add:

• Mortgage or rent (5-10 years remaining)
• Education costs ($100,000-250,000 per child)
• Outstanding debts (credit cards, car loans)
• Funeral and final expenses ($10,000-15,000)
• Childcare and living expenses until children are independent
• Spouse’s income gap if applicable

Note: Quotes vary based on age, health, occupation, and lifestyle. We recommend getting quotes from at least 3-5 providers to compare rates and find the best value for your specific situation.

How to Lower Your Premiums

• Quit smoking or tobacco use (can save up to $3,000/year)
• Lose weight and maintain a healthy BMI
• Exercise regularly (30+ minutes daily)
• Compare quotes from at least 5 providers
• Bundle policies with home and auto insurance (10-25% discount)
• Choose term life over whole life if budget is tight
• Lock in rates early while young and healthy
• Review your policy annually for better rates

Is life insurance medically underwritten?

Most traditional life insurance requires medical underwriting, which may include a health questionnaire, medical exam, blood work, and height/weight measurements. However, many insurers now offer simplified or no-exam options for smaller coverage amounts. The process typically takes 1-4 weeks.

Can I get life insurance with pre-existing conditions?

Yes, you can get life insurance with pre-existing conditions like diabetes, high blood pressure, or heart disease. However, your premiums will be higher based on the severity of your condition. Some insurers specialize in high-risk applicants. Being honest about your health during underwriting is critical.

What’s the difference between face value and cash value?

Face value is your death benefit—the amount paid to beneficiaries. Cash value is an accumulation account in permanent policies (whole and universal life) that grows over time and can be borrowed against. Term policies have no cash value component.

Can I cancel my life insurance policy?

Yes, you can cancel (surrender) your policy anytime. For term insurance, you simply stop paying premiums. For permanent insurance with cash value, you’ll receive the accumulated cash value minus any surrender charges. Most policies have a free-look period (10-30 days) to cancel without penalties.

How long does it take to get approved for life insurance?

No-exam policies can be approved within 24-48 hours. Traditional policies with medical underwriting typically take 1-4 weeks. Simplified or accelerated underwriting falls in between at 3-7 days. Approval time depends on your health profile and how quickly you provide requested information.

Is life insurance taxable income for beneficiaries?

No. Life insurance death benefits are generally NOT subject to federal income tax. However, very large estates may be subject to estate taxes if they exceed the federal exemption limit. Consult with a tax professional for your specific situation, as state laws and individual circumstances may vary.