Life Insurance

What is Life Insurance?

Life insurance is a contract between you and an insurance company. You agree to pay regular premiums (monthly, quarterly, or annually) in exchange, the insurer pays a lump sum (death benefit) to your beneficiaries when you pass. This money can be used for funeral costs, debts (e.g. mortgage, credit cards, etc), Ongoing living expenses, education costs, income replacement.

Are You Eligible?

Eligibility depends on the type of life insurance, but general requirements include:

Age
- most companies accept applicants between ages 18-75.
- Some polificies allow coverage up to 85 or older, with reduced benefits.
Health Status
- Most tradtiona; policies require a medical exam or a health questionnaire.
- Factors considered:
  - Current heslth conditions
  - Medical history
  - Family history
  - Medications
  - Tobacco, alochol, drug use
- Some plans require no medical exam.
Financial Justification
- You must have an insurable interest: a reason why someone would suffer financial loss from your death.
- The insurer may ask about:
  - income
  - assets
  - debt
  - dependents
Citizenship/Residency
- Most insurers require you to be a U.S. Citizen, permanent resident, or have valid legal immigration status.

What Does Life Insurance Provide?

Death Benefit
- A tax-free lump sum paid to your chosen beneficiaries upon your death.
- Amount can range from $10,000 to several million dollars, depending on policiy.
Types of Life Insurance
- Term life insurance
  - Coverage for a fixed period (10, 20, 30, etc. years)
  - Cheapest and simplest option
  - No payout if you outlive the term
- Whole life/ permanent life insurance
  - Covers you for your entire life
  - Includes a cash value component that grows over time (you can borrow from it)
  - Higher premiums
- Universal Life/Variable Life
  - More flexible permanent policies with investment options
  - You can adjust premiums and death benefit

What Disqualifies You?

Health & Lifestyle
- Chronic illnesses (e.g. cancer, diabetes, heart disease, etc.)
- Mental health issues
- Drug/Alochol abuse
- Tobacco use
- Dangerous occupations (e.g. firefighter, pilot)
- Risky hobbies (e.g. Skydiving)
Application red flags
- False or incomplete information on the application
- Criminal record
- Financial instability
- Poor driving record
Other
- Age limits (over 80)
- not having insurable interest

Note: Guaranteed issue life insurance has no health questions, but usually offers lower coverage amounts (e.g. $5000-$25000) and higher premiums.

Application and Renewal

Choose type & Coverage amount
Come to us
We’ll handle the rest
Medical Exam
Approval and first premium

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