Protection
Protection that fits the rest of the plan
Life insurance is the foundation underneath almost every strategy on this site. Getting the amount, the type and the structure right matters far more than the brand name on the policy.
Two questions decide most of the outcome: how much coverage, and for how long. Everything else — carrier, riders, product category — is downstream of those.
Where the industry tends to go wrong is by starting with a product and working backwards to justify it. The order should be the reverse.
The three categories, without the sales angle
- Term
- Coverage for a defined period, typically 10 to 30 years, at the lowest cost per dollar of death benefit. It builds no cash value and expires. For most families with temporary obligations — a mortgage, children at home, a business loan — term does the heaviest lifting.
- Participating whole life
- Permanent coverage with a contractually guaranteed cash value schedule and the potential for non-guaranteed dividends. Higher cost per dollar of death benefit, and the vehicle typically used for Infinite Banking style strategies.
- Indexed universal life
- Permanent coverage with flexible premiums and cash value credited based in part on an index, subject to a floor and a cap. More upside potential than whole life in strong index years, and more moving parts to manage.
Many households are best served by a combination rather than a single policy.
How much coverage is enough
- Income replacement for the years your household would still need it
- Outstanding mortgage and consumer debt
- Business obligations and personal guarantees
- Education costs you intend to cover
- Final expenses and estate settlement costs
- Less: existing coverage, liquid assets available for the purpose
Rules of thumb like "ten times income" are a starting point for a conversation, not an answer.
Details that are easy to get wrong
- Naming your estate as beneficiary instead of a person or trust, which can create probate and creditor exposure
- Beneficiary designations that were never updated after a marriage, divorce or birth
- Employer group coverage treated as a complete plan — it is generally limited and is rarely portable
- Conversion privileges on term policies that expire without the owner realizing it
- Ownership structures that unintentionally pull the death benefit into a taxable estate
What the underwriting process looks like
Coverage is not guaranteed until a carrier issues it. Underwriting reviews health history, prescriptions, family history, driving record, occupation, travel and financial justification for the amount requested.
Some carriers offer accelerated underwriting without an exam for certain ages and face amounts. Health conditions do not automatically disqualify anyone; they affect which carriers are competitive, which is a large part of what an independent agent is for.
Questions
Common questions
Straight answers, including the ones that make the strategy sound less appealing.
Is term insurance a waste of money because it expires?
I have coverage through work. Do I need more?
Can I get covered with a health condition?
Is the death benefit taxable?
Next step
Talk it through with someone who will say if it does not fit
A short conversation about your situation. If this strategy is not right for you, that is a perfectly good outcome and we will tell you.
Never send account numbers, Social Security numbers or policy numbers through a web form.
Request a review
Tell us how to reach you and what you would like looked at. We will follow up with times that work.
Related strategies
Health Insurance
Coverage options for the self-employed, families and small teams, including alternatives to marketplace plans.
Supplemental Coverage
Accident, hospital, critical illness and dental cover that pays cash into the gap a high deductible leaves.
Tax Advantaged Retirement
Diversify not just what you own, but how it will be taxed when you eventually use it.
Important disclosures. All coverage is subject to carrier underwriting, product availability, policy design and applicable state regulations. Policy guarantees are backed by the claims-paying ability of the issuing insurance company. Non-guaranteed elements such as dividends and index crediting may change. Loans and withdrawals reduce cash value and death benefit and may cause a policy to lapse. Tax treatment is based on current federal tax law and individual circumstances and may change. Consult qualified tax and legal professionals.
Next step
Fifteen minutes, and you will know where you stand.
A review is a short conversation about the coverage and savings you already have. We look at what you pay, what it covers, and whether there is a better fit available where you live. No cost, no obligation, and no pitch if nothing needs changing.