What is life insurance? A life insurance policy is a contract stating that an insurance company will pay a benefit when the insured person dies. If you are the insured, this benefit will be paid to your family or business (called beneficiaries).

How much life insurance do I need? It depends on many factors. A general rule of thumb is 6 to 8 times your annual salary.

What tax advantages does life insurance give me? Under current tax laws, there are generally no federal income taxes on life insurance death benefits paid to your beneficiaries. In addition, money that accumulates in a life insurance policy grows tax-deferred. That means you don't pay taxes on the growth on your policy until you take it out.1

Is a medical exam required? There are some life insurance policies that don't require a medical exam, called simplified issue. For most others, a medical exam is required. The exam takes about 30 minutes and is performed by a qualified examiner. The exam includes: Questions about your medical history Blood pressure and pulse Height and weight Blood or a saliva sample Urine specimen EKG (not always required)