When someone asks me about life insurance, they’re usually not looking for a sales pitch—they want real answers to real questions. I get it. Life insurance can feel overwhelming, especially when you’re trying to figure out what you actually need and what it’s going to cost.
For a complete overview, see final expense insurance explained.
Over my years helping families protect their financial future, I’ve noticed that most life insurance questions fall into a few key categories. Let me walk you through the most common ones and give you the straight answers you’re looking for.
What Type of Life Insurance Do I Need?
This is probably the most common life insurance question I hear, and it’s a good one. The answer depends on what you’re trying to accomplish.
Term life insurance is like renting coverage. It’s temporary, affordable, and perfect if you need protection for a specific period—like while you’re paying off a mortgage or raising kids. Think of it as pure protection. You pay premiums, and if something happens to you during the term, your beneficiaries get the death benefit. If nothing happens, the policy expires.
Permanent life insurance (whole life, universal life, indexed universal life) is like buying coverage. It’s designed to last your entire life and includes a cash value component that can grow over time. This is more expensive upfront, but it serves multiple purposes—protection and potential cash accumulation.
When I sit down with a client, I usually start with term because it’s straightforward and meets most people’s immediate needs. But once we understand their full financial picture, we might explore permanent options too.
How Much Life Insurance Do I Need?
Here’s where people often overthink things. The standard rule of thumb is 10 times your annual income, but that’s just a starting point.
I help clients think through what they’re actually trying to replace:
- Lost income for your family
- Outstanding debts (mortgage, credit cards, student loans)
- Future expenses (kids’ college, spouse’s retirement)
- Final expenses (funeral costs, medical bills)
A 35-year-old making $75,000 with two young kids and a $300,000 mortgage might need $750,000-$1 million in coverage. But a 60-year-old with grown children and a paid-off house might only need enough to cover final expenses and help their spouse with retirement.
The key is being realistic about what your family would actually face if you weren’t there.
How Much Does Life Insurance Cost?
This life insurance question comes up immediately after coverage amounts, and I understand why. People want to know if they can afford protection for their family.
Here’s the reality: term life insurance is much more affordable than most people think. A healthy 30-year-old can often get $500,000 in 20-year term coverage for around $30-40 per month. Even a 45-year-old might pay only $80-120 per month for the same coverage.
Permanent coverage costs more because you’re not just buying protection—you’re also building cash value. That same $500,000 might cost $400-600 per month for a properly designed indexed universal life policy.
But here’s what I always tell clients: don’t let cost paralyze you. Some coverage is infinitely better than no coverage. If you can’t afford the “ideal” amount right now, start with what you can afford and adjust later.
Can I Get Life Insurance with Health Issues?
This might be the life insurance question that worries people most. They assume their diabetes, high blood pressure, or past cancer diagnosis automatically disqualifies them. It doesn’t.
Most health conditions are insurable—they just affect your rates. I’ve helped clients get coverage with controlled diabetes, treated high blood pressure, even some cancer survivors. The key factors are:
- How well controlled is your condition?
- How long has it been stable?
- What medications are you taking?
- Do you have other risk factors?
Insurance companies aren’t looking for perfect health—they’re assessing risk. A 50-year-old with well-controlled blood pressure on one medication might get standard rates. Someone whose pressure is all over the place with multiple medications might face higher rates, but they can still get covered.
If you’re worried about health issues, consider working with an independent agent who has access to multiple carriers. Different companies have different appetites for different conditions.
Do I Need a Medical Exam?
Not always. This depends on your age, the amount of coverage you’re applying for, and the type of policy.
Many carriers now offer simplified issue policies that only require answering health questions—no exam, no blood work. These are typically available for smaller amounts (under $50,000-$100,000) and work well for final expense coverage.
For larger amounts or if you want the best rates, you’ll likely need a medical exam. But it’s not as bad as it sounds. A paramedical examiner comes to your home or office, takes basic measurements (height, weight, blood pressure), draws some blood, and collects a urine sample. The whole thing takes 20-30 minutes.
Here’s a tip: if you’re healthy, don’t be afraid of the medical exam. It often works in your favor and can help you qualify for better rates.
When Should I Buy Life Insurance?
The short answer: now, while you’re healthy and rates are low.
Life insurance premiums are based on your age and health at the time you apply. Every year you wait, rates go up. And you never know when a health issue might develop that affects your insurability.
I had a client who kept putting off his application. “I’ll do it next month,” he’d say. Then he had a minor heart episode. What would have cost him $100/month in standard rates now costs $200/month with his cardiac history. That delay cost him $1,200 per year—forever.
The best time to plant a tree was 20 years ago. The second best time is today. The same applies to life insurance.
What Happens If I Stop Paying Premiums?
With term life insurance, it’s straightforward—the coverage ends. There’s no cash value, so there’s nothing to recover.
With permanent life insurance, you have more options. If you’ve built up cash value, you might be able to:
- Use the cash value to pay premiums temporarily
- Reduce the death benefit and maintain coverage
- Convert to a paid-up policy with a smaller death benefit
- Surrender the policy and receive the cash value
This is one advantage of permanent coverage—it gives you flexibility if your financial situation changes.
Should I Replace My Existing Policy?
This life insurance question requires careful analysis. Sometimes replacement makes sense, sometimes it doesn’t.
Reasons you might consider replacement:
- Significantly better rates with improved health
- Better policy features or company ratings
- Your needs have changed substantially
- Your current policy is performing poorly
Reasons to be cautious:
- You’ll restart contestability and suicide clauses
- You might lose valuable policy features
- New policies have surrender charges
- Your health might have declined since your original application
If someone’s pushing you to replace existing coverage, get a second opinion from an independent agent who can look at your situation objectively.
How Do I Choose an Insurance Company?
Financial strength should be your top priority. You want a company that will be around to pay claims decades from now. I focus on carriers with A.M. Best ratings of A- or higher.
Beyond financial strength, consider:
- Policy features and flexibility
- Customer service reputation
- Claims paying history
- Premium competitiveness
This is another area where an independent agent adds value. I work with multiple carriers, so I can match your specific situation with the company that’s best suited for your needs.
What’s the Application Process Like?
Here’s what typically happens:
- Initial conversation - We discuss your needs and explore options
- Application completion - Usually takes 30-45 minutes
- Medical requirements - Exam, blood work if needed
- Underwriting review - Company evaluates your application
- Decision and delivery - Usually 2-6 weeks total
The key is being completely honest on your application. Insurance companies have access to medical databases, prescription records, and motor vehicle reports. Trying to hide something will only delay the process or worse, give the company grounds to contest a future claim.
Final Expense vs. Traditional Coverage
Many people ask about final expense insurance specifically. This is typically whole life insurance in smaller amounts ($5,000-$25,000) designed to cover funeral costs and final bills.
Final expense policies often have:
- Simplified underwriting (fewer health questions)
- Guaranteed acceptance options
- Higher premiums per dollar of coverage
- Immediate coverage (or short waiting periods)
These work well for seniors who want to ensure their final expenses don’t burden their family, but they’re not meant to replace lost income.
Getting Started
The life insurance market can be overwhelming, but that’s exactly why I’m here. I’ve seen too many families struggle because they didn’t have adequate protection, and I’ve also seen people overpay for coverage that didn’t fit their needs.
My job is to cut through the noise, compare your options across multiple carriers, and help you find coverage that makes sense for your situation. No pressure, no pushy sales tactics—just honest guidance based on what’s actually best for you and your family.
Related Reading
- Understanding Final Expense Insurance
- Burial Insurance for Seniors Over 70: Your Complete Guide
- Graded Benefit Whole Life Insurance: Your Complete Guide
- Funeral Insurance for Seniors: Your Complete Guide
Ready to get answers to your specific life insurance questions? Contact me for a free consultation and let’s figure out what makes sense for your situation. I’ll shop multiple carriers to find you the best rates and help you protect what matters most.
- Choose term life insurance for temporary needs like mortgages and raising children since it provides pure protection at affordable rates, while permanent coverage makes sense when you need lifelong protection with cash value growth.
- Calculate your coverage needs based on what your family would actually have to replace—lost income, outstanding debts, future expenses, and final costs—rather than relying solely on income multiplier rules.
- Start with whatever coverage you can afford now rather than waiting for the “perfect” amount, since some protection is infinitely better than leaving your family with nothing.
- Expect term life insurance to cost much less than you think, making substantial coverage accessible for most families who need temporary protection.
- Focus on your specific financial situation and timeline rather than generic advice, since a young parent’s insurance needs differ dramatically from someone nearing retirement with grown children.
