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Next question is, "What are the best whole life companies?" Well, I have to divide that into a couple of sections. One is, what are the best whole life companies for indemnification? And what are the best whole life companies if you're using this for supplemental income? There are several great carriers out there that are really good dividend paying whole life contracts. If you're using it for indemnification, you want to look at the most benevolent underwriter, because that's the game that has to be played in permanent whole life, because you're going to be paying this premium for the rest of your life. So, I want to find out from an indemnification or protection point of view, who gives me the best number because of my health consideration? The secondary part is, if I'm using whole life for an actual income play, I want to be able to use whole life and a contract that actually is going to give me more rate of return. And that's how I look at it; is it income, or is it indemnification?

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Today's question is, Does life insurance go through probate? Generally, when a policy insured dies, he or she has beneficiaries. Those beneficiaries generally see the proceeds direct to them, bypassing probate. I love this because those proceeds then generally, by the way absolutely tax free, go to their beneficiaries without having the interference or going through the steps of probate. What that means is that that money, when it comes direct, the beneficiaries can use that money as they see fit. So there's no dictate from probate how it's done, how it's used, or that it has to go through state probate first. It generally goes to the beneficiaries, and then they can use that to pay off indebtedness or to put money aside for future obligations. And that's why I like it, because its one of the perks of life insurance. It generally goes directly to beneficiaries and not through probate.

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How much is $1 million life insurance policy? Are we using term life insurance or are we using permanent life insurance? That's going to dictate how long the coverage is going to need. Am I a male or a female? Am I a smoker or a nonsmoker? What's my medical history like? What is the para-med exam result that I have to take for the application? I need to incorporate all those issues into what the price tag's going to be for $1 million coverage, as well as, think about this; you're going to have to also add on, do you have a hazardous vocation? That could be another additional price tag on top of your premium. If you have recreational issues, like I like to scuba dive or mountain climb, those also are incorporated into your price tag. If you're looking for $1 million of coverage and you can answer all of those questions, you can come up with whose got the most competitive price tag throughout the life insurance carrier market.

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Today's question is, Does life insurance cover drug overdose? Remember, during the contestability of a contract during the first two years, if somebody actually overdosed on drugs and that can be quantified as suicide, most carriers will not pay the death claim. If this is an accidental drug overdose, whether by prescription or whether by street drugs, then if it's just a normal death claim, it should pay the claim. But keep in mind, this is going to be highly investigated during the first two years. So if death occurs and drug overdose is involved, you're going to go through an investigation process to determine under their due diligence process whether this was suicide or not. So just keep in mind when you're looking at a question like this you're saying, When did it occur and under what circumstances did it occur?

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Can I get life insurance if I have cancer? Well, it depends upon a lot of questions. The type of cancer diagnosed, the date first diagnosis occurred. I need to know was it treated by surgery, chemotherapy, radiation therapy, hormonal therapy. I'll also need to know, enlist the stage of the cancer, as well as the grade of the cancer. I need to know also, has it spread to other parts of the body, because that's going to be issue for us to be able to underwrite. And then the last one is has there been proper follow ups to your cancer? Which is CT scans, X-rays, bone scans, laboratory work. I need to know those kinds of things to accumulate enough information to give you the proper offer. Remember, certain carriers are more benevolent in certain types of cancers than others.

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What is the best life insurance for doctors? There's no such as thing one carrier that's really the best for physicians. They may have an underwriting program that's a little bit more benevolent for wealthy clients, and generally, doctors are wealthy clients. They may be a little bit more benevolent in medical underwriting; they may be a little bit more benevolent in giving more death benefit amounts for insurance justification purposes. For one carrier to say that they are better at physician underwriting than another, I'm not really sure that that's true. What I'm looking at always is, 'Who has the best deal and price tag based on my medical condition?' then I can fit that into what I'm presenting to a physician and using brokerage companies that will give me several carriers on a spreadsheet. I'll be able to determine which is the best contract for that physician.

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Today's question is, is life insurance really worth it? Well, that's a good question. If I have financial liabilities, like indebtedness, a mortgage, if I have future obligations, like a college education for my children or my retirement, or I want to replace my income for my family if something happens to me, I think that's worth it. How do I pay for that? You may want to look at term life insurance if you have a temporary indebtedness or future obligations and it's temporary, that could be your play because that's the cheapest way to play. And that makes it worthwhile. If you have ongoing financial indebtedness or future obligations, or you need to replace income, or you have terrible intent, you probably need to buy a permanent form of life insurance. Depending upon what you're trying to cover, I think that life insurance is absolutely needed and necessary and yes, I think it's worth it.

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Today's question is: Why do I need life insurance? You need life insurance if you have financial indebtedness, if you have beneficiaries that would have to pick up that tab if you were not there. We'd also need future obligations that you want to be able to make sure that you protect; it could be college planning, it could be retirement planning. Anytime you have obligations that you want to protect your beneficiaries from, whether it's indebtedness, future obligations, even charitable intent, you want to make sure that you're covered with life insurance. You can get coverage sometimes through group plans through work, you could buy individually, and sometimes you can buy small units with guaranteed underwriting so you don't have to go through the underwriting process. Even simplified underwriting can do it. Whether you're using full underwriting, simplified, or guaranteed, you can get the coverage that you need to protect your beneficiaries from the financial liability that you may incur.

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Today's question is, "Is whole life insurance a good investment?" Well, if you've been on the web, you know there are a lot of detractors on this. Whole life, as an investment, are for conservative investors, for people who want to beat at least the Treasuries, because if it had a history being able to at least on over a long period of time to do a little bit better than Treasuries. So if you're looking at whole life as a supplemental income and it's configured correctly by using the lowest possible base amount with term writers and a paid up addition writer, that combination could be good for a very conservative, long term investor or long-term saver's mindset. And remember its tax advantage, withdrawals are basis and policy loans to gain could come out absolutely free as long as you keep the contract enforced for the policy ensured.

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Which life insurance is best? Sometimes, you have to look at the ratings of the carrier, because people are very concerned about the financial strength of a carrier, so I want to look at the financial strength. The second is: How do they price out on product spreadsheets or grids? Is the premium competitive with other players? The third thing I want to know about is: What are their claims-paying ability? Are they paying their claims on time? There are certain services that actually look at that issue. You can check out financial strength, you can look at claims-paying ability, and most importantly, is that premium going to be really the most competitive premium that you can get? That's why we like to shop in the brokerage community to see which one is the best. Lastly, it's an underwriting issue as well. Which one is the best? Who gives me the most benevolent underwriting and the cheapest offer, based on my medical condition?

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Which life insurance company is the best? I don't know if I can say that, because remember, they all have different fortes. Some are great underwriting companies, some are great death benefit; cheap premium companies. Some companies are really good about supplemental income; their cash values are really good and they have a good track record of accumulating wealth. You want to look at 'what is the reason? What is the area?' Each area has their own forte. Some people want highly-rated carriers, so you're going to look at the big financial strength of a carrier or the carrier's claims- paying ability. Any of those areas are separate areas of discussion and that's why it's difficult to ever say, "Here's one, or here's the best." If I'm looking for price tag, underwriting, cash value accumulation, or just cheap premium just to pay my premium off to cover my liability, it depends upon what category you're in so I can be able to say, "Is that the best company?"

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What is term insurance? Term insurance is temporary expense reimbursement money, TERM. Temporary insurance using term covers only temporary obligations or temporary financial indebtedness. It's a time-certain event where you think you're going to have the coverage will not be necessary after that time period. It can be bought in 5, 10, 15, 20, 30, sometimes even 40-year increments, depending upon your age. Term insurance usually has a conversion component inside the policy provision, so that if you actually needed the coverage beyond your term that you bought, you'd be able to go ahead and extend it by converting it to a permanent form of life insurance. There's windows to that conversion, but generally, term is for a temporary expense reimbursement, something that you're going to have; an exposure or a liability, for a certain time.

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What is whole life? Whole life is a permanent product that can go all the way out to age 121. The products that are usually sold today are called 'participating'. They're actually returning pieces of the premium you paid, a portion of it, back to you as a dividend. It's a return of an unused premium. Whole life will give you the coverage that you need for the entire period, usually at minimum to age 100, and again, out until age 121. Those dividends, even though they're not guaranteed, those dividends could be a nice supplemental retirement plan that you can put aside with your qualified plans. Whole life has been around for a long time. If you have a permanent need, whole life should be one of the permanent products that you look at.

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What is permanent life insurance? Permanent life insurance could be universal life, it could be whole life, it could be variable life. Any of those 3 are permanent forms. Depending upon how far out you want to go in the maturity date, some of these contracts go to age 100, some even farther out. Even some guarantee permanent contracts, you can make it small enough in the timeline to actually terminate at age 85. You want to make sure that if you're using permanent insurance, you're telling me that you have permanent financial indebtedness or future obligations that are not going to go away. That's why we're not looking at term, you're looking at permanent forms of insurance to cover indebtedness, future obligation, charitable intent, and to replace a person's income when they die.

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What is universal life? Universal life insurance was invented in the '80s. It's a combination of buying term and investing the difference. It has different crediting methods which could be interest rate, could be indexing, or could be separate sub-accounts. Those will give you 3 different ways to accumulate cash. If you're looking for death benefit and it needs to be permanent, you need to make sure that the universal life contract that you choose has guaranteed death benefit for the period that you need. The cash accumulation ideas, whether it's interest rate or whether it's indexing or separate sub-accounts, those will bring some accumulating cash and it could be used for some retirement supplement plan to augment your 401k.

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Today's question is, "What does life insurance not cover?" Well, during the first two years of the life insurance policy from the day that it's issued, they don't cover suicide. And if there are material misstatements or fraud in the contract, the death claim could be in jeopardy from being paid. So, you always want to be able to be honest about all your issues in the contract application, all the questions. By the way, that includes smoking. Some people try to say, I am not a smoker, when they are. And if they find that out, there could be elements of fraud or misrepresentation on the application that again, could put in jeopardy your death claim. So, I always say, be as honest as you can on the application. Just tell the truth. And remember, they don't pay on suicide during the first two years. It's called the contestability period.

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What do life insurance companies test for? As you well may know, people have to go through, generally, paramedical exams that look at 3 things, generally: Your blood, your urine, and sometimes EKG. All these can be performed at your home, your office, or other places of convenience. They're really looking for different areas. It has 24 different areas they're looking at. They're looking at the outside normal range which can dictate diabetic conditions or cancer conditions. They're looking for different diseases that the blood and urine workup will actually display on the panels and really tip them off to other areas such as drug use, tobacco use, alcohol use. They're looking for all these areas because those are mortality-driven areas, and they actually have a really big impact on the price tag that you'll pay.

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Today's question is: What does term life insurance cover? Remember first of all, if we're using term, it only covers that period in time. If you buy a 20-year term, as an example, it's only going to cover you for 20 years. If you buy $ 1/2 million dollars of death benefit, you'll have it for as long as you pay your premiums on time; you'll have that coverage. What is it good for? How does it cover? It's going to cover anything that you think that you need. Let's say, at $ 1/2 million, you had a mortgage at $250,000, you had credit card debt, you had car debt, you had educational debt. You want to cover that so that your spouse or your beneficiaries will not be actually saddled with your debt if something happened to you. When I'm looking at, 'What does term life insurance?' it's the time zone, how long do I have, what obligations would I have, and how can I relieve my beneficiaries from any of those obligations if something happens to me?

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Today's question is, is life insurance taxable? Well, at death of the policy insured, the actual proceeds generally go to the beneficiaries of the policy, absolutely tax free. It takes about 60 days for it to process, and your beneficiaries will receive it. And of course, they can use that to pay off indebtedness, or to put money aside in some kind of investment for future obligations like college education or retirement of maybe a surviving spouse. But the beauty of it is, sometimes you can use this for all kinds of ideas that you never thought about, including ongoing income for the surviving spouse; an idea that is really becoming much more popular today. Some business situations as well as some estate situations may incur a tax, depending upon how it's owned. But predominantly, most life insurance goes tax free to their beneficiaries.

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What is supplemental life insurance? Supplemental life insurance can be extra insurance that you have above and beyond either your group plan at work or individually-purchased life insurance. If you purchased this and you need more, some people look at supplemental life insurance to augment what they already have. You may want to look at this in 2 ways" 'Would I like to have more coverage or would I like to have a supplemental retirement income plan, an extra cash value contract, that can generate withdrawals to basis and policy loans to gain tax-free, as long as I keep the policy in force for the life of the policy insured?' If I'm looking at it as a supplemental income play or I'm looking at it as a supplemental death benefit, supplemental life insurance can be a great adjunct to what I already have, either by group or by my individual purchase.

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Today's question is, Can I get life insurance if I have sleep apnea? Well the answer is many times yes, but I need to know some answers to some questions. Are you using a CPAP machine, or a BiPAP machine, as well as what's your height and weight, and have you used tobacco in the last 12 months? I also need to know the date or age of first diagnosis, and whether the sleep apnea was diagnosed as obstructive, central, mixed, or unknown. As well as was the sleep apnea diagnosed as mild, moderate, or severe and then the date of the last sleep study that you have undergone. All these factors will be able to give us a great idea of which carrier to go to. Remember certain carriers are more benevolent with sleep apnea when it comes to pricing life insurance.

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Today's question is, "How much life insurance should a stay at home mom have?" Well if a stay at home mom is the only earner, she's a single income with children, she needs to look at all the liabilities that she has today. So if she has indebtedness, whether it's credit card, mortgage, or any kind of auto payments, she'll want to look at those or future obligations for her children where she may have college education, or retirement plans for them. She'll want to be able to do some kind of coverage that she can do to protect them in case something happens to them. And remember if they have an ex-spouse involved, you'll want to make sure that that person also has insurance on them so if something happens to him that mom and the child are taken care of.

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What is the best life insurance for police officers? There's not really a best life insurance for police officers. There's not a contract or a company that are out there specifically looking at that vocation. Remember, that vocation has different levels of activity. Some are police officers in regular squad cars doing regular patrols; they have more exposure to liability. There are other officers that are inside the office; they're desk officers, they're higher up, maybe up the food chain, lieutenants, captains, and so forth. They're really not exposed to the exposure that the regular officers have. Companies are going to price this based on vocational risk. Vocational risks are 'Is this hazardous?' Of course, police officer work is hazardous. To say, 'Who's the best?' it depends upon the state we're in, and it depends upon the officer and his specific duties.

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Today's question is, "How much life insurance should a married couple have?" Well, generally, married couples now are dual income. Everybody's working, it seems like, today. Their mortgage's usually predicated on two incomes, their debt is predicated on two incomes, all the ability for them to pay for college education and future retirement is generally predicated on those two incomes. So you want to protect both of them and you want to be able to cover all those arenas, including by the way, income if one spouse dies. I want the death benefit to pay off all those obligations and all those indebtedness but I also want it to pay and generate an income so that my spouse can stay in the house, can go ahead and pay off those bills, and meet all our future obligations, especially if we have children involved. Well, that's our consumer question for today. If you have any questions, just submit them to www.insurancelibrary.com

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How does term life insurance work? It's temporary. It does have conversion ability in case you want to extend it past the time that you need it, but it's actually in increments of 5, 10, 15, 20, sometimes even 30; there's a few carriers out there that actually do a 40-year term. Term is a very inexpensive way to cover financial indebtedness, future obligations for a temporary time, as well as other areas that you may want to look at, especially if you're in business. You can indemnify each other as partners. Term insurance is temporary coverage for any time period that you can actually look at, and hopefully by the time your temporary coverage is over, that all your liabilities and other issues like even funeral and final expense are already paid for through your own asset accumulation.

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Today's question is, "How much life insurance do I need?" Well, you need to take all your financial obligations in indebtedness, all your future obligations like college, retirement, other areas that you think that you want to talk about or even charitable intent. You need to take all those totals, plus the loss of income. Because if I'm not there to generate income, what happens to my spouse or my family? I need to be able to generate income for them to live on. So what I'm looking at, all the ideas of "How much do I need?" I want to take all these areas into consideration; financial indebtedness, future obligations, maybe some charitable intent, and to replace the income from the person who's died. Well, that's our consumer question for today. If you have any questions, just submit them to www.insurancelibrary.com.

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Today's question is, "How much life insurance is considered enough?" Well, I definitely want to cover all my indebtedness: mortgages, credit card, auto, home, all my debts that I may incur. I also want to look at future obligations; maybe my children's college education, my retirement or replacing my income if I'm not there so that my spouse or business partners or beneficiaries are not saddled without any income coming in that I used to generate. So it's really important. How much do I need? I want to try to buy what I need to cover all those areas and then maybe a little bit more in case I have charitable intent. A lot of people have big hearts but small wallets and sometimes I add that on because people want to be able to give something in case something happens to them. Well, that's our consumer question for today. If you have any questions, just send them to www.insurancelibrary.com

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Today's question is, "How much is life insurance?" Well it depends on if you're buying term insurance or you're buying permanent insurance. It depends on your gender. It depends on your age, your smoking status. It also depends on your medical history as well as the exam results when you apply for insurance. Remember, keep in mind that also if you have any vocational hazards that could be an issue as well and part of the factor that comes in with pricing your life insurance premium, as well as you may have recreational issues like rock climbing or maybe scuba diving. Those also will come in and incorporate into a price tag to figure out how much we're going to have to spend on life insurance to cover the death benefit amount that you're looking for.

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Today's question is, "How many life insurance policies can I have?" Well, actually you can have as many as you want as long as the death benefit doesn't exceed the justification issue, which is the companies will say, "We think that your exposure on your life is worth," let's say a million dollars. So if you have four or five policies and they total up to a million and as long as it did not exceed what they call financial justification you can multiple policies and many people do. But remember, the total amount of insurance on all these policies are going to be shown on the application. And so when you take the total, as long as it doesn't exceed what they believe is your economic justification, it doesn't exceed it, you'll be able to get as much insurance as you want up to that limit.

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Today's question is, How long does it take to get life insurance money? Well I'm assuming this question is how long does it take to get death benefit proceeds if somebody died that I am the beneficiary of? If I'm looking at that, usually it's around 30 to 60 days. You're going to get a form from the company. You're going to have to fill that form out. Generally they're going to get a newspaper clipping from the obituary and the certificate of death. Once that's processed, you should be getting a check, sometimes even wired to your account depending on how you set it up, you should be getting a check between 30 and 60 days generally, unless the death occurs in the first to years. If it's during the first two years of a contestability it'll take longer because the company has the right to investigate the claim.

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Today's question is, How long does it take to get life insurance? Well, generally speaking, it takes about 60 days. You're going to have to fill out an application. You're going to have to take a paramed exam. They're going to order attending physician statements from your doctor. So when you do full underwriting, it takes between 60 days, and sometimes, depending upon if the carrier is very popular, it could take longer, up to 90 days. Keep in mind, if you don't want to go through the full underwriting process, you could do simplified issue or you could do guaranteed issue. That would cut the time down. What you're giving up by doing that is, without full underwriting, you're just going to be used... the boilerplate that they're going to use for simplified and guaranteed is not going to be as cutting edge from a price point of view. You'll probably wind up paying a little bit more. But if you want to really expedite your issue and get your policy in place, those two ideas could be a way to go.

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Today's question is, How does life insurance work? Well, life insurance indemnifies or protects, or covers your liabilities. Let's say you have indebtedness. Most people have a mortgage, and especially most mortgages today are dependent on two incomes. You'd want to be able to cover both people that are involved in the mortgage so that if somebody died, they'd be able to pay off their mortgage. But, not only that, you'd want to be able to pay off all your credit cards, any other indebtedness you have and put money aside, bought through the death benefit for future obligations that you might have. Like for example, college education, or the retirement of the surviving spouse. These are areas where insurance indemnifies you from financial loss and gives your beneficiaries, usually, tax free benefits if something happens to you.

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Today's question is, How is life insurance taxed? Well, if you use life insurance just for a death benefit and the death benefit proceeds are paid directly to the beneficiaries, generally speaking it's tax free. If you're using life insurance as an income play, as long as you keep the contract enforced for the life of the policy insured, those proceeds, whether it's withdrawals to basis or policy loans to gain, also will be tax free. But if you are able to go ahead and use a permanent product, a cash value permanent product and you actually surrender the contract or it lapsed and there was gain in the contract, you will pay ordinary income tax on that contract on all the gain of the policy. So it's important whether you use it for indemnification, to know the rules of engagement on taxes as well as if you're using it for income.

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What is group life insurance? In many businesses, some of the employer benefit packages include universal life, and that's in a group scenario. It's going to look . . . generally, that's going to be priced at simplified issues, sometimes even guaranteed issue. The cool thing about universal life as a permanent form of life insurance, it can accumulate cash value and you could use it as a supplemental retirement plan or use if for its coverage benefit. When you're looking at group, instead of just term insurance which is traditionally group cases, many people are now looking at permanent forms of life insurance, this one being universal life, as part of a group benefit package. When you look at this, this is a pretty good idea because you're going to have to pay up a little bit of economic tax on this, about $50,000 of death benefit, because you're really gaining a benefit. To me, that's pretty worth it because wherever you have to pay a little bit in taxation for the benefit, you're not really putting this out on your hand. Depending upon if your employer is paying it or depending upon if you're paying it, it really is still a pretty good idea. You have permanent coverage based on all these lives on a group case and you have a little bit of cash value accumulating in this. It's great for supplemental retirement income. You can look at universal life as a double-edge; a way of protecting assets, protecting your life, as well as having some income later on.

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Who has the greatest need for life insurance? Everybody that has beneficiaries that they want to indemnify, cover, or protect from their own indebtedness. Maybe you have a mortgage; maybe you have credit card debt or auto debt. You may have future obligations like college or retirement. Whatever you want to protect, you want to be able to make sure your beneficiaries receive the tax-free benefit of life insurance proceeds to take care of those obligations so that they're not saddled and suffer through financial liabilities that you incurred or you created. Remember, just a heads up; you may even want to create this for charitable intent. Whatever your reasons are, who has the greatest need? People have the greatest exposure.

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Today's question is, "Is life insurance a good investment?" Well, that's a very controversial question. Depending upon what form of cash value life insurance you use, you could be using a participating whole life, you could be looking at current, assumption, interest rate, universal life, index universal life or variable life. All of those four different platforms require you to do a financial profile to make sure you understand your investment risk and the time horizon, which are very important to use this. They have tax advantages, there's no doubt about that, but you need to make sure that you're suitable for these products. Is it a good investment? If it's configured right, it can be great. If it's not done correctly by design, it's not going to really be a good deal. So, if it's done correct, it could be a great supplemental part of your retirement plan that can really help you in your golden years and during your retirement period.

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Today's question is, Does Geico have life insurance? Most of you know that Geico is a property casualty insurance company, and of course they have the gecko as their advertising mascot. They outsource all their life insurance applications off their web to an outside vendor, so they don't really manufacture term life insurance nor do the manufacture permanent life insurance. So when you're looking for life insurance and you're one of their actual policy holders in property casualty, a lot of times you'll stay within that agency and you'll go ahead and purchase other insurances like life insurance. If you're looking for life insurance, you may want to also look online at different brokerage houses to see if their price tags are any better than what Geico is offering.

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Today's question is, "What are the different types of life insurance?" Well, you have term life insurance in 5, 10, 15, 20, 30, sometimes even 40 years. You have permanent forms of life insurance, participating whole life. You have current assumption Universal Life. You have indexed Universal Life. You have variable Universal Life. These are all different types and forms of life insurance. Depending upon if you need temporary coverage or you need permanent coverage will dictate what area you'll go in. Then in the second area, if you're looking at permanent insurance, are you using this exclusively to cover and protect or are you going to add this on as part of your supplemental income retirement plan to add on to maybe your traditional 401(k) or whatever other retirement plan you have. It's interesting. If you're going to do that, you're going to need to do a risk tolerance to see how you feel about long-term hold positions with life insurance and which one that you're going to use whether it's interest rate, indexed or separate sub-accounts.

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What is credit life insurance? There's some different definitions on this out on the web that you can see, but credit life insurance, some banks will say, "I want to indemnify a loan." If I'm going to take a loan out from a bank, they want to be indemnified in case something happens to you so they may ask for life insurance on your life, somewhat what they call credit life. It's very similar to mortgage insurance. If something happens to you, they want to indemnify the mortgage, or pay it off, in case one of the people that have obligated themselves to the mortgage dies. Credit life insurance can also be used in business scenarios where business take out loans, and those loans need to be protected. The bank, or the institution that's loaning, wants to protect themselves and indemnify themselves so in case one of the people that are on the loan die, they're going to have their insurance pay off their debt to the bank or the institution that they're borrowing from.

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Today's question is, "How much does life insurance cost?" Well, it depends on your gender, your age, your smoking habits, your medical background, your history. It also depends on the exam results that you'll take when you go and apply for insurance. It also may depend on your vocation. Do you have hazards in your vocation? And it also depends on, do you have recreational issues, like, are you a rock climber or a scuba diver? It matters because those are higher risks. When you also ask about what does it cost, is it going to be temporary insurance, 5, 10, 15, 20 years? Or is it going to be permanent insurance going all the way out to age 100, maybe even farther? When you look at all these factors and accumulate them, they'll come up with a number that will tell you, here is your price tag.

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What is cash value life insurance? Cash value life insurance can either be in participating whole life, it can be in current assumption universal life, it can be in index universal life, or variably universal life; those are the 4 cash value products. We always have to pay the policy expense loads first. Once those are paid, we can take the crediting from that, whether its interest rate, dividend, or whatever it is, we credit that into the policy cash values and they accumulate. During the accumulation, it's tax-deferred. When the money comes out, providing that the policy is kept enforced for the policy insured's life, those proceeds, withdraws to basis or policy loans to gain, can come out tax-free.

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Today's question is, Can you cash in a life insurance policy? Well, providing that's it's a cash value policy, you can go ahead and cash it in. Just a heads up, if the cash value is greater that your premiums paid, in other words, greater than your basis, you will have to pay ordinary income tax on the gain, and some of these contracts have surrender charges. If they have surrender charges, you'll not only have to pay ordinary tax on gain, but you'll also have to pay the surrender charge. Just keep in mind, I like the liquidity. If you can borrow from your policy and keep it in force, it's a better deal. If you have to cash it in, you may want to think about, well I'm just cashing it in to go into another policy, you may want to use a 1035 exchange to bypass the kind of issues like taxable event on ordinary income tax if you have gain in the policy.

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Today's question is, Can I sell my life insurance policy? Well, number one, a life insurance policy is personal property. Could you sell it? I think you can, usually through the life settlement market. But keep in mind that the original reason that you sold the life insurance was not to sell it for that specific purpose and most carriers and life insurance companies are going to take a dim view on you trying to buy insurance for just the purpose of selling it. But if the reason you bought life insurance doesn't exist any longer, you could go ahead and sell it on the secondary market of life insurance settlement, and you can sell it for cash. Generally, a cash value contract is going to get a little bit more than what you have in your policy; sometimes a lot more, depending upon the death benefit and your timeline. Can you sell it? You could sell it and again, I recommend make sure that you're doing this for the right reasons. And make sure that your coverage is no longer necessary.

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What is a unit of life insurance? Generally, most people will buy their insurance, they'll say, "I need $ 1/2 million or $100,000." Sometimes, you'll look at children or spousal attachments. Instead of doing a term writers, some people buy their extra insurance for children and spouses based on unit. Those units could be as small as $2000, $5000, $10,000 in units, and they buy them in price tags. They've already homogenized and made a standardized price tag for each one of these units. Those units then are attached to the policy and become part of the contract. In case something happens, those units would pay out according to the death benefit amount.

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Today's question is, "How to buy term life insurance?" Well, I say, when I go out to the brokerage market I want to see a brokerage house that shows as many carriers as possible and, believe you me, there are hundreds of term life insurance companies. I want to look at their premium price because they vary between first place and twentieth place. It could be 20 percent premium, so you definitely want to shop it. The second thing, who is the most benevolent underwriting company? Who is going to give you the best possible offer based on your medical history and your paramed exam that you're going to need to take with the application. To me it's really important when you're looking at buying term life insurance to make sure you cover the period that you need to have, that you already settled in your mind that is a temporary coverage need and you don't need permanent. When you're looking at term, it's price and your underwriting offer that you're going to get from your carrier.