Life Insurance Basics
What is life insurance?
Life insurance is a legal contract between you and an insurance company. You agree to pay a premium — monthly, quarterly, or annually — and in return the insurance company agrees to pay a death benefit to your designated beneficiary when you pass away, provided the policy is in force at the time of death.
Who needs life insurance?
If you have a spouse, partner, or children who would suffer financially if you were to die, you need life insurance. The primary purpose is to ensure your loved ones are taken care of financially. Others who need coverage include business partners with buy/sell agreements.
When should I purchase life insurance?
You should buy life insurance now if you are married and your spouse depends on your income, if you have young children, if you own a home with a mortgage, if you have a large estate subject to estate taxes, if you are a business co-owner with a buy/sell agreement, or if you have a special-needs child who will require ongoing care.
How much life insurance do I need?
A common method is the multiple of income approach. Between ages 25 and 35, we recommend 20–25 times your income. Between 35 and 50, multiply by 15. Above 50, use a factor of 10. These are general guides — every situation varies. Cost is also a factor since you need to maintain premium payments over time.
How much life insurance can I get?
Insurance companies use income multipliers to determine maximum coverage and will not provide more than they believe you need based on their formulas. There is some flexibility — if your needs exceed standard formulas, your agent can advocate with the underwriter on your behalf.
Is there a fee for your service?
No. LifeInsure.com is paid a commission by the insurance company if we assist you in getting your policy in force. There is no fee to you for our service.
Have a question specific to your situation? Compare quotes anonymously or call (866) 868-0099 to speak directly with Richard.
Types of Life Insurance
What are the different types of life insurance?
There are two main types — permanent and temporary. Whole life and universal life are permanent, providing coverage for your entire lifetime. Term life insurance provides temporary coverage for a specified period, typically 10, 15, 20, 25, or 30 years.
What is term life insurance?
Term life insurance provides coverage for a limited number of years that expires without value if you survive the stated term. Most term policies can be renewed at a higher premium at the end of the term, or converted to a permanent policy during the term period.
What term length should I choose?
If you have a specific need, such as covering a 30-year mortgage, choose the term that covers that period. Many people get coverage lasting until retirement age or until their children are beyond college age.
What happens at the end of my term?
Your coverage expires. You can renew the policy at a much higher premium, or it is usually less expensive to purchase a new policy if your health hasn’t changed significantly.
Can I convert my term policy to a permanent policy?
Most term policies include conversion privileges that allow you to convert to a permanent policy during the term period without medical underwriting. Your insurability is guaranteed — the insurance company cannot require a new medical exam for the converted policy.
What is permanent life insurance?
Permanent life insurance covers you for your entire lifetime. The two main types are whole life and universal life insurance. Unlike term, it does not expire as long as premiums are paid. It also builds cash value over time.
What is mortgage life insurance?
Mortgage life insurance is a form of decreasing term insurance in which the death benefit decreases annually to match your mortgage balance. Due to the lower cost of level term insurance today, mortgage life insurance has largely fallen out of common use.
Have a question specific to your situation? Compare quotes anonymously or call (866) 868-0099 to speak directly with Richard.
Quotes and Rates
Are the quotes on your website guaranteed?
The quotes are estimates based on the information you provide. Final rates are determined at the end of the underwriting process based on your application, medical exam results, and other information gathered. If you answer questions honestly and there are no surprises during underwriting, your final rate will typically match or be close to your original quote.
How do I know if I'm getting the best rates?
As an independent broker, LifeInsure.com works with all major life insurance companies and is not tied to any single carrier. Our quote engine searches across the market to find you the best available rate for your situation.
What is a health class?
Insurance companies use health classes to categorize applicants by risk level and assign premiums accordingly. Typical classes for non-tobacco users are Preferred Plus, Preferred, Standard Plus, and Standard. Below these are sub-standard or table-rated categories for higher-risk applicants. Separate classes exist for tobacco users.
What does the A.M. Best rating mean?
A.M. Best provides independent financial strength ratings for insurance companies, reflecting their ability to meet policyholder obligations. A Superior rating of A++ or A+ indicates the company is financially sound. We recommend working only with A-rated carriers and also reviewing ratings from Standard & Poor’s, Fitch, and Moody’s.
Which policy should I choose?
For term life insurance, we generally recommend the least expensive A-rated company unless you have a preference for a specific carrier. For permanent policies, which have more variables, we review your options and recommend the best fit for your needs.
Does smoking or tobacco use affect my rates?
Yes, tobacco use increases premiums — but competitive rates are still available. Some companies charge less for tobacco use than others. Occasional cigar smokers or chew tobacco users may still qualify for preferred non-smoker rates with select carriers. Call us at (866) 868-0099 for guidance on your specific situation.
Does my weight affect my life insurance rate?
es. Insurance companies factor in height and weight when calculating your rate class. Our quoting engine takes your height and weight into consideration when calculating your rate class and premium. We have a height/weight guideline chart on the site to help you understand how this affects your classification.
Application and Underwriting
How long will my application take to approve?
The average processing time is 3–6 weeks from the date we receive your completed application. The most common delays are incomplete applications, missing information, and slow responses from physicians regarding medical records.
Who should I name as my beneficiary?
Most people name their spouse or partner as the primary beneficiary and their children as secondary (contingent) beneficiaries. Secondary beneficiaries receive the death benefit if the primary beneficiary is no longer living. You can name any person or entity that has an insurable interest in you.
Can I change my beneficiaries later?
es. Insurance companies allow beneficiary changes with a simple form at any time. Your new beneficiary must have an insurable interest in you.
What is underwriting?
Underwriting is the process of evaluating your application and determining your risk class and premium. The underwriter reviews your application, medical exam, medical records, motor vehicle report, and other records to assign your health classification.
Why do they need my Social Security number?
Social Security numbers are used for identification purposes — including obtaining your medical records and paying benefits to your beneficiaries. If the application requests it, it must be provided.r dapibus leo.
Will my credit be checked?
No. Insurance companies do not run a credit check as part of the life insurance underwriting process..
Will a bankruptcy affect my application?
It depends on factors including how recent the bankruptcy, what type it was, and the discharge date. Each situation is evaluated case by case. We can help assess whether your specific circumstances will be an issue before you apply.
Why do I need a medical exam?
No-exam and accelerated underwriting policies skip the exam entirely. For traditional policies, the exam typically includes blood and urine samples, blood pressure readings, height and weight measurements, and a health questionnaire. We recommend scheduling the exam first thing in the morning after an 8-hour fast for the best results.
Will I receive my medical exam results?
Yes. Your blood and urine results will be mailed to you or available online directly from the insurance or exam company. We do not receive them as they are confidential.
What is an APS (Attending Physician Statement)?
An APS is a report that the insurance company requests from your personal physician when additional medical information is needed during underwriting. If there is no significant medical history, an APS may not be required. Physician response times can slow down the process.
I recently quit smoking. Can I get non-smoker rates?
If you have been smoke-free for one year, some companies will offer Standard Non-Tobacco rates. After two to three years smoke-free, a few companies will offer Preferred Non-Tobacco rates.
Will my citizenship or residency status be an issue?
All carriers we work with require applicants to be U.S. residents — either citizens or holders of permanent visas (green cards). Applicants with temporary work visas can qualify for coverage in some cases.
What if I fail to disclose information to the underwriter?
We strongly recommend disclosing all material information. Insurance companies have the right to contest a claim during the first two years if they find that a relevant condition was not disclosed in the application. When in doubt, over-disclose rather than under-disclose.
Have a question specific to your situation? Compare quotes anonymously or call (866) 868-0099 to speak directly with Richard.
Premiums and Policy Management
Is there a money-back guarantee if I change my mind?
Yes. If you change your mind while your application is pending, the insurance company will refund any deposit paid. Once the policy is issued, you have a 20–30 day free-look period during which you can cancel for a full refund, no questions asked.
What do I pay after my guaranteed premium term ends?
Some term policies are renewable. If so, you pay up to the guaranteed maximum renewal premium shown in your policy. Actual renewal rates may be higher or lower, but will never exceed the guaranteed maximum. If you can still qualify medically, it is usually cheaper to apply for a new policy with a new carrier.
Will my premiums ever change?
In a level-premium term policy, your premiums are fixed for the entire term period. If you renew at the end of the term, premiums increase significantly. In some flexible-premium universal life policies without lapse protection, premiums can change over the life of the policy.
What happens if I stop making premium payments?
Most policies have a 30-day grace period after a missed payment. After the grace period, your policy will lapse and will no longer be in force. In some cases, the insurance company may reinstate the policy if you pay the overdue premiums.
Have a question specific to your situation? Compare quotes anonymously or call (866) 868-0099 to speak directly with Richard.
More Frequently Asked Questions
How long does life insurance underwriting take?
Life insurance underwriting can take anywhere from a few minutes to several weeks, depending on the type of policy, your health history, and whether a medical exam is required. No-exam policies are often approved much faster than traditional fully underwritten policies.
What happens if I’m declined for life insurance?
If you’re declined for life insurance, you may still qualify with another carrier, a different policy type, or a guaranteed issue plan. It’s important to find out why the decline happened before applying again.
Can I have more than one life insurance policy?
Yes, you can own multiple life insurance policies from one or several insurance companies. Many people combine policies to cover different financial needs and time periods.
What is a life insurance contestability period?
The contestability period is usually the first two years after a policy is issued, during which the insurance company can review and investigate claims for misrepresentation or application errors.
What happens if I miss a premium payment?
Most life insurance policies include a grace period, typically 30 days, allowing you time to make the payment before coverage lapses. If the policy lapses, you may need to reapply or request reinstatement.
Can I change my life insurance beneficiary?
Yes, most life insurance policies allow you to change your beneficiary at any time unless the beneficiary is listed as irrevocable.
Does life insurance pay out for suicide?
Most life insurance policies include a suicide clause that limits coverage during the first two years of the policy. After that period, suicide is generally covered like other causes of death.
What is a return of premium life insurance policy?
A return of premium policy refunds the premiums you paid if you outlive the term of the policy. These policies usually cost more than standard term life insurance.
Can I convert my term policy to permanent insurance?
Many term life insurance policies include a conversion option that allows you to switch to permanent coverage without taking another medical exam, usually within a specified time frame.
What is the difference between term life and whole life?
Term life insurance provides coverage for a set number of years and is generally more affordable, while whole life insurance offers lifelong coverage and builds cash value over time.
For more information about obtaining affordable life insurance, call the insurance specialists at LifeInsure.Com at (866) 868-0099 during normal business hours, or you can contact us through our website at your convenience.
Last Updated on July 9, 2026 by Richard Reich
