Frequently Asked Questions

The amount of life insurance you need depends on your individual circumstances, including your financial obligations and goals. A common rule of thumb is to have coverage equal to 5-10 times your annual income, but a more accurate assessment will consider your debts, expenses, and future financial needs. Our brokers can help you figure it out.

Choosing the right policy involves evaluating your financial situation, goals, and budget. Term life insurance is often more affordable, while permanent life insurance provides lifelong coverage with an investment component.

Several factors can impact your life insurance premiums:

  • Age: Younger individuals typically pay lower premiums.
  • Health: Your overall health and medical history play a significant role.
  • Coverage amount: Higher coverage amounts lead to higher premiums.
  • Smoking status: Smokers often pay higher premiums.
  • Lifestyle: Risky hobbies or occupations may increase premiums.

Even if you're single with no dependents, life insurance can still be beneficial. It can help cover funeral expenses, outstanding debts, or leave a legacy for loved ones or charities. Additionally, purchasing life insurance when you're young and
healthy can result in lower premiums. What's worst is that health problems developed by time may even deprive you from a purchasing a life insurance policy with standard premium if you wait too long to apply for life insurance.

  1. Term life insurance will expire at age 80 (85 with some insurers) and permanent life insurance won't expire as long as the premium is paid.
  2. The premium of term life insurance will increase significantly at renewal whereas that of permanent life insurance is fixed for life.
  3. When you cancel a permanent life policy, you can get part or all of what you have paid back; you won't get any premium back when you cancel a term life policy.
  4. There is cash value growing by time within a permanent life insurance policy. If you occasionally miss one or a few payments the cash value may automatically pay for your premiums so that your policy will not lapse right away.
  1. Mortgage life insurance is life insurance provided by your bank to cover the outstanding balance of your mortgage. You pay the same monthly premium while your coverage decreases; as to a term life insurance provided by insurance companies, you pay a fixed monthly premium while your coverage stays the same.
  2. You need to renew your mortgage life insurance every time you renew your mortgage which means if your health condition has changed your bank may decline your life insurance coverage. If you get a term life insurance from the beginning, your insurability is locked forever, and you won't need to worry about future health issues at all.
  3. The beneficiary of a mortgage life insurance is the bank while the beneficiary of a term life insurance is the one(s) you choose. Usually, they are your loved ones whom you want to financially protect from your death.
  4. When you get a mortgage life insurance from your bank, you are not sure whether you are really covered because it's underwriting at claim, not at application. A term life insurance is guaranteed to pay out as long as your application is approved so that you know for sure that your loves ones are protected.
  1. The premium of a whole life policy is invested by the insurance company which gets the investment return while giving you back a guaranteed (not guaranteed amount with a participating policy) amount as cash value of your policy every year.
  2. The premium of a universal life policy is invested on the financial market through the funds you choose within your policy, therefore you get all the investment returns (minus insurer's management fees) reflected as accumulated cash value of your policy. As the market fluctuates, the return is not guaranteed and in some years it can even be negative. However, if the policy is well setup, it is the cheapest way to have a permanent life insurance coverage.

No. All death benefit is paid out tax-free and creditor proof. However, make sure that you name your loved ones as beneficiaries when taking out a life insurance policy, otherwise the death benefit will be paid to your estate which will not be creditor-proof and subject to notary fee.

Yes, some insurance companies offer no-medical life insurance where you don't need to go through a medical exam during the underwriting process. According to the severity of your conditions, there are generally 4 levels of premiums.  Our broker will help you determine which premium you can qualify for.

Yes, you can often make changes to your life insurance policy, such as adjusting coverage amounts, adding riders (optional policy features), or even converting a term policy to a permanent one.

Yes, you can cancel your life insurance policy any time without a penalty.  However, when you cancel a term life policy you don't get any premium back which exactly works like a car insurance; whereas when you cancel a permanent life insurance policy you can get the accumulated cash value back.

No, you don't need to pay any fees in addition to your insurance premium.  The brokers are compensated by the insurance company each time they successfully sell an insurance policy. Please be aware that no life insurance broker or representative can negotiate the premiums for a client, which means you will get the same price whichever broker you choose to work with.  All prices are the same nationwide and you simply need to let the broker shop for the best price for you.

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