Life Insurance

Frequently Asked Questions (FAQ)

What are the different types of life insurance?

There are two types of life insurance: Term Insurance, and Permanent Insurance.  Each of these has different variations on how they are marketed, structured, and sold, so make sure you understand your options to help you pick a product that’s right for you.

How much life insurance do I need?

How much would your family need to stay in their current living situation without you.  Consider your debt, annual cost of living, health care costs, and additional benefits you want your loved ones to have such as college tuition, vacation expenses and more.  For business partners, how much would they need to buy your family out of their share

Does Vaping count as smoking for life insurance?

Most life insurance companies will rate vaping as smoking, but one carrier will give it as high as a Non-Smoker Plus rating.  Ask us for more details on this carrier. 

Is there a life insurance drug  test?

The traditional life insurance application includes a physical exam with a blood and urine test.  In these samples they can test for drugs, and often do.  They also ask about usage in the application.    

What’s the best life insurance or extreme hobbies?

The answer to this is not plain and simple.  You’ll want to work with an agent that has access to an independent underwriting consultant who can advise on your specific activity and the intensity in which you participate to help determine which carrier is most lenient.  Ask us, and we can help. 

What is the life insurance application process?

Start by working with an agent to help determine which type of policy is right for you.  Then you’ll fill out the application, and schedule a physical exam at your home.  Once those two items are done, the underwriter at the insurance company will begin to review your file.  They may request medical records from your doctor, and they may have specific questions for you to complete their review.  Once the underwriter feels they’ve thoroughly reviewed your application they will provide their approved health rating or decline.  The insurance company will then deliver a policy, and if you would like to move forward, you will sign your policy and send in payment.  Once they’ve collected payment, your policy is active.

Do life insurance companies test for marijuana?

Most life insurance companies test for marijuana in the physical exam.   Sometimes it is done by random selection, other times it is part of their questionnaire.  Some life insurance companies are more marijuana friendly  than others, and we’re here to help. 

What’s the best life insurance for marijuana smokers?

There are a few life insurance companies that tolerate modest to moderate marijuana smoking, allowing for a non-smoker rating if you qualify.  Let us help you get started. 

Do life insurance companies test for THC?

Most life insurance companies test for THC during the physical exam with a urinalysis.  Some test randomly while others test consistently.

What’s the best life insurance for smokers?

Smoking tobacco will increase your life insurance rates by 2x or 3x.  Work with an independent agent who can compare smoker rates across a number of carriers while also considering other health factors.

Is term life insurance recommended?

Term insurance is the cheapest way to get the most insurance coverage, and we recommend having some kind of coverage to help protect your loved ones.  It covers the worst case scenario to ensure your family can continue living their current lifestyle if you were to pass away earlier than expected. 

What is Marijuana friendly life insurance?

Marijuana friendly life insurance is an insurance carrier that offers non-smoker health ratings for moderate marijuana use.  This is a significant savings for people who smoke or ingest marijuana and do not smoke tobacco. 

What is Term Insurance?

Term insurance is a form of life insurance that covers you for a certain amount of time, typically 20 or 30 years, and sometimes 10 or 15 years.  Consider getting a level term policy where rates stay the same for the entire length of the term.  If you die from a tragic accident or terminal illness, the insurance company will pay your beneficiaries a lump sum of tax-free money.   

What is Return of Premium?

Return of Premium is a form of term life insurance that will actually return the money that you paid in premiums if you are still alive when the term ends.  You can also cash it out earlier in the term for a reduced benefit.  Premiums are more expensive for this type of policy than they are for a regular term policy. 

What is Universal Life Insurance?

Universal Life Insurance is a form of permanent insurance that can cover you no matter how long you live.  They have a lot of flexibility in terms of building cash value, increasing the death benefit over time, adjusting the death benefit to reduce premiums, and more.  Traditional Universal Life policies are structured with a fixed interest rates while Variable Universal Life policies are tied to the stock market.  Similarly Index Universal Life Policies are tied to index funds to reduce the risk of the stock market while also benefiting from some of its growth