Life Insurance
Life insurance is income replacement for the people who depend on yours. The right policy is rarely the most expensive one. It's the one sized to a real number, with a real term, and bought before you actually need it.
What it is.
Life insurance comes in two big categories: term (rents you coverage for a set number of years) and permanent (whole, universal, indexed universal, all of which build cash value over your lifetime). Most clients we write only need term. A smaller group benefits from permanent for estate planning, business succession, or guaranteed lifetime cash value.
AJ has been writing life insurance for 20+ years and holds an RICP designation from The American College, which means retirement income strategy is part of the conversation, not an afterthought. The pitch is simple. Tell us what you're trying to protect (income, mortgage, kids' college, a business buyout) and we will size the policy to that number with no upselling.
Below is what each type of policy actually does, who it makes sense for, and the riders most people skip without realizing what they paid for.
Anyone with people who depend on their income, anyone with a mortgage, anyone with co-owners in a business, and anyone planning for estate-tax exposure.
What it covers.
Each policy is a stack of named coverages. Required parts are mandated by state law. Recommended parts are what we put on most policies. Optional parts depend on your situation.
Death Benefit
The face amount of the policy paid to your beneficiaries if you die during the policy term. Tax-free in almost every case. This is the core thing you're buying. Everything else is structure.
Term Life
Coverage for a fixed number of years (10, 15, 20, 30) at a level premium. Cheapest option per dollar of coverage. Right for most clients with kids and a mortgage. A 35-year-old non-smoker can usually get $1M of 20-year term for under $40 a month.
Whole Life
Coverage for life, with a guaranteed cash value that grows on a fixed schedule. Premium is much higher than term but never goes up. Useful for estate planning, guaranteed asset accumulation, or business buy-sell where you NEED coverage to be there at age 80.
Universal Life
Permanent coverage with flexible premiums and cash value tied to either a declared rate (UL), an index (IUL), or market sub-accounts (VUL). More flexibility than whole life. Requires more attention, since the policy can lapse if cash value gets used up.
Conversion Option
Most term policies allow you to convert all or part of the term coverage to permanent (no medical exam needed) within a window, often the first 10 to 20 years. Critical for clients whose health may change. Always confirm conversion terms before you buy.
Waiver of Premium
If you become disabled and can't work, the carrier waives premiums but keeps the policy in force. Usually $50 to $150 a year on term. Worth it for sole earners.
Accelerated Death Benefit
Lets you pull a portion of the death benefit early if you're diagnosed with a terminal illness. Often included free. Confirm it's there.
Child Term Rider
Small term coverage on your kids (usually $10,000 to $25,000) attached to your policy. Inexpensive ($60 to $100 a year). Includes guaranteed insurability so the child can convert to a permanent policy as an adult regardless of health.
Long-Term Care Rider
Permanent policies can include LTC riders that let you draw down the death benefit for qualifying long-term care expenses. Useful in coordinated retirement plans. Pricing is policy-specific.
When it kicks in.
Real situations we see in the agency. The point is to show how each layer of coverage maps to actual life, not to scare you.
30-year mortgage, two kids under 10
Classic case for term. We size the policy to cover the mortgage payoff plus 10 to 15 years of replacement income. A 20-year level term in the $1M to $1.5M range covers the family until the youngest is independent.
Two business co-owners
Each partner owns life insurance on the other, funded by the business. If one dies, the survivor uses the death benefit to buy out the deceased partner's family at a pre-agreed price. This is a buy-sell arrangement and it prevents the spouse from inheriting half a business.
Single, no dependents, late 20s
Probably don't need much yet. But locking in a small term policy at age 27 is dramatically cheaper than at 37, and most have a conversion option that protects you against future health changes. Often $250,000 of 20-year term for under $20 a month.
Retiree with $4M estate
A second-to-die permanent policy can be structured to provide liquidity for estate taxes and guarantee a tax-free inheritance to children or charity. RICP-level conversation, not an off-the-shelf product.
Self-employed sole earner
Term life plus a disability policy plus waiver-of-premium rider. The combo handles the two most common income disruptions (death, disability) at the lowest combined cost.
Key terms.
Plain-English definitions. The vocabulary insurance carriers assume you already know.
- 01Face Amount
- The death benefit. The number paid to your beneficiaries.
- 02Premium
- What you pay for the coverage. Term premiums are level for the term and then jump dramatically. Permanent premiums are higher but level for life.
- 03Cash Value
- The savings component inside permanent policies. Grows tax-deferred. Can be borrowed against. Whole life grows on a fixed schedule. Universal life grows based on credited rates or indexes.
- 04Beneficiary
- Who gets the death benefit. Always name a primary AND a contingent beneficiary. Update after marriage, divorce, or new children.
- 05Underwriting Class
- The carrier's rating of your risk based on health, family history, lifestyle. Preferred Plus, Preferred, Standard, Substandard. Each class has its own premium.
- 061035 Exchange
- Tax-free rollover from one permanent life policy to another. Useful when an old whole life policy can be replaced with better-priced coverage without triggering tax.
Common questions.
Questions clients ask before they get on the phone with AJ. If yours isn’t here, just call.
A common starting point: 10x annual income, plus the mortgage balance, plus expected college costs for any kids. That's a starting number, not a final answer. For $80,000 income, a 30-year mortgage of $400,000, and two young kids: somewhere in the $1M to $1.5M range usually fits.
Get a quote that takes minutes,
not days.
Tell us a bit about what you need to insure. We’ll come back with a real recommendation. No junk mail. No auto-dialer. No commitment.