Life insurance is a contract between you and an insurance company. In exchange for regular premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to your beneficiaries upon your death. This helps ensure financial security for your loved ones.

The right type of life insurance depends on your individual needs and financial goals. Term life insurance is ideal for temporary coverage, while whole life and universal life insurance offer lifelong coverage with cash value benefits. Consult with an insurance advisor to determine the best option for you.

VUL insurance provides coverage for a specific period (e.g., 10, 20, or 30 years) with lower premiums and no cash value. Whole life insurance offers lifetime coverage, fixed premiums, a guaranteed death benefit, and a cash value component that grows over time.

Depending on your policy type, you may be able to adjust your coverage amount. Universal life insurance policies typically allow for more flexibility in adjusting premiums and death benefits, while term and whole life policies may have more restrictions.

If you miss a premium payment, your policy may lapse, meaning you would lose coverage. However, many policies have a grace period, usually 30 days, during which you can make the payment without losing coverage. Some policies also offer options to reinstate coverage if it lapses.

Not all life insurance policies require a medical exam. Simplified issue and guaranteed issue policies do not require medical exams but may have higher premiums or lower coverage amounts. Traditional policies, such as term and whole life, often require a medical exam to assess your health and determine premiums.

Premiums are determined based on several factors, including your age, health, lifestyle, occupation, and the amount and type of coverage you choose. The younger and healthier you are, the lower your premiums are likely to be.

You can borrow against the cash value of certain life insurance policies, such as whole life and universal life. The loan amount is typically subject to interest, and any unpaid loan balance will reduce the death benefit.

A beneficiary is a person or entity designated to receive the death benefit from your life insurance policy upon your death. You can choose one or multiple beneficiaries and specify the percentage of the benefit each should receive. Common beneficiaries include spouses, children, other family members, or trusts.

The cash value is a component of permanent life insurance policies, such as whole life and universal life, that accumulates over time. It can be borrowed against or withdrawn, and it grows on a tax-deferred basis. The cash value is separate from the death benefit and provides a savings or investment element within the policy.

To file a claim, contact the insurance company and provide the necessary documentation, including a death certificate and the policy details. The company will review the claim and, if approved, pay the death benefit to the designated beneficiaries.

Yes, you can have multiple life insurance policies to meet different financial needs. For example, you might have a term policy for temporary coverage and a whole life policy for lifelong protection and cash value accumulation.

A rider is an add-on provision to a life insurance policy that provides additional benefits or coverage. Common riders include accelerated death benefit, waiver of premium, and accidental death benefit. Adding riders can enhance your policy’s protection based on your specific needs.

Generally, the death benefit paid to beneficiaries is not subject to income tax. However, any interest earned on the death benefit after the insured's death may be taxable. Additionally, withdrawals or loans against the policy’s cash value may have tax implications. Consult a tax advisor for specific advice.