Life Insurance Needs

Term life insurance provides coverage for a specific period (typically 10, 20, or 30 years) and pays a death benefit only if you die during the term. It's more affordable but builds no cash value. Whole life insurance provides lifetime coverage and includes a cash value component that grows over time, which you can borrow against or withdraw from. While more expensive, it combines insurance protection with a savings element and never expires as long as premiums are paid.

The amount of life insurance you need depends on several factors: income replacement needs (typically 10-15 times your annual income), outstanding debts (mortgage, car loans, credit cards, student loans), future educational expenses for dependents, funeral and final expenses, and other financial goals. A common approach is the DIME formula: Debt + Income + Mortgage + Education costs. Many experts also recommend considering your family's lifestyle expenses and any special needs dependents might have.

Yes, you can be denied life insurance coverage based on several factors: severe health conditions, terminal illness, high-risk occupations or hobbies, history of substance abuse, poor driving record with serious violations, certain mental health conditions, international travel to dangerous regions, criminal history, or very advanced age. However, even if denied traditional coverage, alternatives exist such as guaranteed issue policies (which ask no health questions but offer limited benefits) or group policies through employers.

A life insurance medical exam typically includes: height and weight measurements, blood pressure and pulse readings, blood and urine samples, medical history questions, and sometimes an EKG for older applicants or higher coverage amounts. The exam is usually conducted by a paramedical professional at your home or office and takes 30-45 minutes. The insurer uses results to assess your risk level and determine your premium rate. Some insurers now offer 'no-exam' policies, though these typically have higher premiums or coverage limitations.

A beneficiary is the person, organization, or entity you designate to receive your life insurance death benefit. Primary beneficiaries receive the benefit first; contingent (secondary) beneficiaries receive it if the primaries are deceased. When choosing beneficiaries, consider: who depends on your income, specific financial needs you want to address, legal implications (especially for minors who cannot directly receive benefits), and keeping designations updated after major life events (marriage, divorce, births). You can name multiple beneficiaries and specify the percentage each receives.