Life Insurance FAQ | Johnathan Adler

Question 1

How much life insurance might I need?

Accepted Answer

There is no universal formula. The appropriate amount depends on your income, outstanding debts, number of dependents, existing assets, and the financial obligations you want to address. Common approaches include replacing several years of income, covering a mortgage balance, or funding future education costs. A conversation can help clarify what amount, if any, makes sense for your specific situation.

Question 2

Who generally needs life insurance?

Accepted Answer

Life insurance is most relevant when someone else would face a financial hardship if you were no longer here. This typically includes people with dependents, a mortgage or significant debt, a business partner, or anyone who contributes income that others rely on. It may also be appropriate for estate planning or business continuity purposes.

Question 3

What is the difference between term and permanent life insurance?

Accepted Answer

Term insurance provides coverage for a defined period—typically 10, 20, or 30 years—and expires at the end of that term if not renewed. It is generally less expensive and is designed to address temporary financial obligations. Permanent insurance provides lifelong coverage and may accumulate cash value over time. Each serves different planning needs, and neither is universally superior.

Question 4

Is employer-provided life insurance enough?

Accepted Answer

Employer-provided group life insurance is often limited to one or two times your annual salary and does not follow you if you change jobs or are laid off. Whether it is sufficient depends on your personal obligations, income, and financial situation. Many people find that supplementing or replacing group coverage with an individual policy provides more reliable, portable protection.

Question 5

How much does life insurance cost?

Accepted Answer

Premiums vary based on the type of coverage, the amount of coverage, your age, health history, and the carrier's underwriting requirements. Term insurance is generally less expensive than permanent insurance for the same death benefit. The best way to understand what coverage would cost in your situation is to have a conversation and, if appropriate, request an illustration.

Question 6

Will I need a medical examination?

Accepted Answer

It depends on the type of coverage, the amount applied for, and the carrier's underwriting requirements. Some policies are issued without a medical exam based on a health questionnaire alone. Others require a paramedical exam, which typically involves basic measurements and a blood draw. The requirements will be explained clearly before you apply.

Question 7

Can I qualify if I have a medical condition?

Accepted Answer

Many people with health conditions are still able to obtain life insurance coverage, though the available options, coverage amounts, and premiums may differ. Eligibility and pricing depend on the specific condition, its severity, and the carrier's underwriting guidelines. This is something that can be explored during the evaluation process. No promises about qualification can be made before underwriting.

Question 8

What happens during underwriting?

Accepted Answer

Underwriting is the process by which an insurance carrier evaluates your application to determine eligibility and premium. It typically involves reviewing your health history, prescription records, and in some cases a medical exam. The carrier may also consider your occupation, lifestyle, and financial information. The timeline varies by carrier and coverage type, ranging from a few days to several weeks.

Question 9

How long does the application process take?

Accepted Answer

The timeline depends on the type of coverage and the carrier's underwriting process. Some simplified-issue policies can be approved within days. Fully underwritten policies that require a medical exam typically take two to six weeks. You will be kept informed of the status throughout the process.

Question 10

When should I review an existing policy?

Accepted Answer

A policy review is worth considering after major life changes—marriage, divorce, the birth of a child, a significant change in income, the purchase of a home, or the start or sale of a business. It is also worth reviewing if your policy is more than five years old, if you are uncertain what your current coverage includes, or if your beneficiary designations may be outdated.

Question 11

Can an existing policy be changed or replaced?

Accepted Answer

In some cases, yes. Options may include increasing or decreasing coverage, changing beneficiaries, adding or removing riders, or replacing a policy with one that better fits your current needs. Any change or replacement should be evaluated carefully, as replacing a policy may involve new underwriting, a new contestability period, and potentially higher premiums.

Question 12

Does scheduling a conversation obligate me to apply?

Accepted Answer

No. Scheduling a complimentary conversation does not obligate you to apply for coverage or make any decision. The purpose of the initial conversation is to understand your situation, answer your questions, and determine whether exploring coverage options makes sense. You decide if and when to move forward.

Life Insurance Questions, Answered Plainly

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