Plain answers,without the sales pitch.

There is no single formula. A common way to think about it is to add up what you would want covered if you were no longer here: a number of years of income for the people who rely on it, a mortgage or other debts, future costs such as education, and final expenses, then subtract coverage and savings already in place. The Coverage Needs Explorer on this site walks through that arithmetic as an educational exercise. A licensed professional can help refine it.

Term life covers a defined period and usually has no cash value, which keeps the initial premium lower. Whole life is permanent coverage with a fixed premium and a contractually scheduled cash value, at a substantially higher cost for the same death benefit. Universal and indexed universal life are permanent designs with flexible premiums and different ways of crediting interest. None is universally best; the fit depends on how long the need lasts and what you want the policy to do.

Cash value is the amount that accumulates inside a permanent policy from premiums paid above the cost of insurance, credited with interest or dividends according to the contract. It is the amount available if the policy is surrendered, and the amount that can be borrowed against. Loans and withdrawals reduce the death benefit and can have tax consequences if the policy lapses.

The issuing insurer sets premiums through underwriting. Factors typically include age, sex, health history, family history, tobacco use, occupation, hobbies, the amount of coverage, the type of policy, and the term length. Durmont Capital does not set premiums and does not quote or imply pricing on this website.

Often, yes. Many conditions are insurable, sometimes at a standard rate and sometimes at a higher one, depending on the insurer's guidelines and how well the condition is managed. Some conditions may limit the products available. Eligibility is decided by the insurer, and nothing on this site should be read as a promise of approval.

The insurer reviews the application and may request additional information, medical records, or a paramedical exam, depending on the product and the amount. Some policies use accelerated underwriting with no exam. Once the insurer makes an offer, you review the policy as issued, confirm it matches what you expected, and pay the initial premium to place it in force. Many states provide a free-look period in which a new policy can be returned for a refund.

To explore options, we would discuss your goals, the people and obligations you want to protect, coverage already in place, and a comfortable premium range. Detailed health and financial information is only collected on an insurer's own application, which comes later and is never gathered through this website.

Almost always. Marriage, children, a home purchase, a new business, a mortgage paid off, or retirement each change what a policy needs to do. Reviewing coverage after major life events, and otherwise every few years, is a sensible habit. Some policies can be adjusted; in other cases a new policy or a reduction may be appropriate.

A beneficiary designation controls who receives the death benefit and generally overrides a will for that asset, so it deserves care. Naming contingent beneficiaries, keeping designations current after life changes, and thinking carefully before naming a minor directly are common considerations. Coordinating with an attorney is advisable when a trust or an estate plan is involved.

Term coverage typically ends after a grace period. Permanent policies may offer options such as using cash value or dividends to continue coverage, reducing the death benefit, or electing a non-forfeiture option. Each has consequences; reviewing them before a payment is missed is far better than after.

Three questions are a useful start: What would the business lose if a key person died? Is there a written agreement for what happens to an owner's interest, and is it funded? Would the family of an owner be treated fairly, and promptly? Life insurance is often used to fund these answers, alongside legal and tax guidance from the owner's own advisors. Durmont Capital does not draft agreements, value businesses, or give tax advice.

It depends on the structure. In a key person arrangement the business typically owns and is the beneficiary of the policy. In a buy-sell arrangement ownership may sit with the business (entity purchase) or with the other owners (cross purchase). The structure has legal and tax consequences, which is why it is settled with the owners' attorney and accountant before a policy is applied for.