FAQ?

Helping you understand your coverage options with clarity and confidence.

General Life Insurance Questions🕊️ 

Q: Why should I consider life insurance?
A: Life insurance provides financial protection for your loved ones by replacing lost income, paying off debts, covering final expenses, or supplementing retirement. It’s one of the most important parts of a solid financial plan—offering peace of mind knowing your family’s future is secure.

Q: What are the main types of life insurance?
A: The three most common types are:

• • • Term Life Insurance – Provides coverage for a set number of years at an affordable rate.

    • Whole Life Insurance – Offers lifetime protection with guaranteed cash value growth.

    • Universal Life Insurance – Provides flexible premiums and adjustable death benefits to meet changing needs.
      
      

Term Life Insurance ⏳

Q: What is Term Life Insurance?
A: Term Life provides coverage for a specific period, such as 10, 15, 20, or 25 years. If the insured passes away during that term, the policy pays a lump-sum benefit to the chosen beneficiary.

Q: What happens when my term ends?
A: When your term expires, you may choose to:

• Renew the policy (often at a higher rate based on your age),

• Convert it to a permanent policy (like Whole Life or Universal Life), or

• Let the policy end if coverage is no longer needed.
  
  

Q: What does it mean to “convert” my Term Life policy?
A: Conversion allows you to change your existing term coverage into a permanent plan—without a medical exam or health questions—as long as it’s done within the conversion period. This is valuable if your health changes or you want lifelong protection and cash value growth.

CCRE Rider (Convertible and Critical Illness Rider)🛌

Q: What is a CCRE Rider?
A: The Convertible and Critical Illness Rider (CCRE) enhances your Term Life policy by allowing you to convert your term policy into a permanent plan later and also provides a living benefit if you are diagnosed with a qualifying critical illness.

Q: What does the CCRE Rider cover?
A: The rider typically allows a portion of your death benefit to be advanced to you while you’re living if diagnosed with a critical, chronic, or terminal illness (depending on the insurer’s terms). This can help pay for:

• Medical treatments or recovery costs

• Mortgage or rent

• Income replacement during illness

• Daily living expenses
  
  

Q: Why is adding a CCRE Rider beneficial?
A: Because it adds flexibility and protection—you can access funds while living if you face a major health event, and you retain the option to convert to permanent coverage later, even if your health declines. It’s one of the most cost-effective ways to future-proof your policy.

Whole Life Insurance♾️

Q: What is Whole Life Insurance?
A: Whole Life provides lifetime coverage with guaranteed level premiums, a fixed death benefit, and cash value accumulation that grows tax-deferred over time. It’s ideal for those who want long-term protection and stable value growth.

Q: Can I access the cash value while I’m alive?
A: Yes. You can withdraw or borrow against your policy’s cash value at any time. Many use this as a supplemental retirement strategy, an emergency fund, or to help pay off major expenses later in life.

Q: Does withdrawing cash reduce my death benefit?
A: Yes, withdrawals or unpaid loans reduce the remaining death benefit. However, for clients who value flexibility or need access to funds, Whole Life offers a reliable way to build and use tax-advantaged savings during their lifetime.

Universal Life Insurance🌎

Q: What makes Universal Life different from Whole Life?
A: Universal Life is more flexible. You can adjust your premiums and death benefit over time. It also builds cash value based on current interest rates rather than a fixed schedule, giving you more control over how your policy grows.

Q: Who is Universal Life best suited for?
A: It’s ideal for clients who want permanent protection with the ability to adapt their coverage as their needs change—such as increasing coverage during working years and reducing premiums later in retirement.

Q: Can I use the cash value from a Universal Life policy while I’m alive?
A: Absolutely. You can withdraw or borrow from the policy’s cash value as it grows. This feature can serve as a tax-advantaged source of funds for retirement income, emergencies, or large purchases.

Living Benefits💰

Q: What exactly are Living Benefits in a life insurance policy?
A: Living Benefits—sometimes called accelerated benefit riders—allow you to access a portion of your death benefit while you’re still alive if you experience a serious, chronic, or terminal illness. This means your policy doesn’t just protect your loved ones after you pass—it can protect you during some of life’s most difficult times.

Q: How do Living Benefits work?
A: If you’re diagnosed with a qualifying illness such as cancer, heart attack, stroke, or another covered condition, your insurance company may advance a percentage of your death benefit directly to you—often up to 50–100% depending on the policy. You can use those funds however you choose:

• Cover out-of-pocket medical costs

• Replace lost income

• Pay your mortgage or household bills

• Travel for specialized treatment

• Maintain your lifestyle while focusing on recovery
  
  

Q: Do I have to pay the money back?
A: No. Living Benefits are not loans—you do not pay them back. The amount you receive is simply deducted from your future death benefit, leaving the remaining balance to your beneficiary.

Q: What types of conditions typically qualify for Living Benefits?
A: Qualifying events depend on your policy and carrier but often include:

• • • Critical Illness: Heart attack, stroke, cancer, organ failure, or major surgery

    • Chronic Illness: Inability to perform 2 or more activities of daily living (ADLs) such as bathing or dressing

Q: How are Living Benefits different from traditional health insurance?
A: Health insurance pays doctors and hospitals for medical treatment. Living Benefits pay you directly—so you decide how to use the money. That flexibility is what makes it a powerful financial safety net.

Q: Do Living Benefits increase the cost of my life insurance?
A: In many cases, these riders are included at no additional cost, though some carriers may charge a small fee depending on the plan and coverage level. Considering the potential financial relief they provide, Living Benefits are one of the most valuable features of modern life insurance.

Q: Can I add Living Benefits to an existing life policy?
A: In most cases, Living Benefits must be included at the time you purchase your policy. Some carriers allow you to add them through a rider, but availability depends on your current policy type and health status.

Q: What happens if I never use my Living Benefits?
A: If you never use your Living Benefits, your full death benefit remains intact for your beneficiaries—so you’re covered either way. It’s truly a win-win feature.

Q: Why are Living Benefits so important today?
A: With medical advances, more people survive critical illnesses—but recovery can bring significant financial strain. Living Benefits ensure you have access to cash when you need it most, so your savings, retirement accounts, and home remain protected while you focus on healing.

Final Thoughts🧠

Life insurance isn’t just about leaving something behind—it’s about having options and flexibility while you’re living. Whether you’re looking for affordable protection, lifetime security, or a way to build tax-advantaged cash value, we can help you find a plan that fits your life, your goals, and your peace of mind.

💬 Need Assistance?

Our licensed brokers are here to help you understand your options, compare plans, and find coverage that fits your needs.

📞 Call us at: 410-855-5388
🌐 Visit: My Smart Health Plans
✉️ Email: CONTACT US

We’d be happy to help you review your options and get enrolled in the plan that’s right for you!

Disclaimer: Product features, riders, and benefits described above may vary by insurance carrier, policy type, and state availability. Eligibility, coverage terms, and benefit amounts are determined by each insurance company’s official policy provisions. Please refer to your specific policy documents for complete details.