Protect the people who depend on you

It depends on your debts, income, family, and goals. On our call, I'll help you figure out a number that makes sense.

Often, yes. Many final expense and mortgage protection plans ask only a few health questions, and I work with several companies.

No. An IUL is life insurance. Its cash value can grow based on an index, but it's not invested directly in the market. It has fees and costs, and it's best for people who plan to keep it long term.

Term life covers you for a set period, such as 10, 20, or 30 years, and is the most affordable way to get a large amount of coverage. Whole life covers you for your entire life, has premiums that never increase, and builds cash value over time. Many families use term for big temporary needs, like a mortgage or raising kids, and whole life for final expenses or a lasting legacy.

It depends on your age, health, tobacco use, the type of policy, and how much coverage you want. A healthy person who buys term coverage younger pays the least. I compare several companies to find the best price for your situation.

Not always. Many policies, including most final expense and many term and mortgage protection plans, only ask health questions and check prescription and medical records. Larger amounts of coverage may require a quick exam, which can usually be done at your home.

Many policies let you access part of your death benefit early if you're diagnosed with a qualifying chronic, critical, or terminal illness. That money can help with medical bills or lost income while you're still living. Availability and terms vary by company and state.

In most cases, the death benefit is paid to your beneficiaries free of federal income tax. Large estates or special situations can have other tax considerations, so talk with a tax professional about your specific case.

Part of your premium goes into the policy's cash value, which earns interest based on the performance of a market index, such as the S&P 500. Your money isn't invested directly in the market. Growth is limited by a cap or participation rate, and a floor (often 0%) protects your cash value from index losses.

A cap is the maximum interest you can earn in a period. A participation rate is the percentage of the index's gain you're credited with. The floor is the minimum you can earn, often 0%, so a down year doesn't reduce your cash value due to the index. Insurance companies can change caps and participation rates over time, within the policy's guaranteed limits.

Index losses aren't passed on to you, but an IUL has costs, including the cost of insurance and policy fees, that come out of the cash value. If the policy is underfunded or earns less than expected, those costs can reduce the cash value, and the policy could need higher payments to stay in force. That's why it's important to fund it properly and review it every year.

You can usually access cash value through policy loans or withdrawals, for example to supplement retirement income. When structured correctly and kept in force, loans are generally not taxed. Loans and withdrawals reduce the death benefit, and if the policy lapses with a loan, it can create a tax bill. I'll show you how to use it carefully.

An IUL is often a good fit for people who need lifelong life insurance, can fund the policy consistently for many years, and want a tax-advantaged way to build cash value in addition to retirement accounts. It isn't a short-term savings tool. If you need the lowest-cost protection, term life may be a better choice.