Frequently Asked Questions

Life insurance is a contract between you and an insurance company. You pay premiums, and in return, the insurance company pays a death benefit to your beneficiaries when you pass away. This money can help your family pay for funeral costs, outstanding debts, mortgage payments, and ongoing living expenses.

Life insurance provides financial protection for your loved ones. If you have dependents, debts, or want to leave a legacy, life insurance ensures your family can maintain their standard of living even if you're no longer there to provide for them. It can cover funeral expenses, replace lost income, pay off mortgages, fund education, and more.

A general rule of thumb is 10-12 times your annual income. However, your specific needs depend on factors like your debts, mortgage, number of dependents, future education costs, and income replacement needs. Our advisors can help you calculate the right amount using methods like the DIME formula (Debt + Income + Mortgage + Education).

Living benefits, also called accelerated death benefits, allow you to access a portion of your life insurance death benefit while you're still alive if you're diagnosed with a qualifying critical, chronic, or terminal illness. This provides financial support when you need it most.

Many policies include living benefits at no additional premium cost. Some carriers may charge a small administrative fee when you access the benefit, but typically there's no extra ongoing cost to have this feature included in your policy.

Critical Illness: Heart attack, stroke, cancer, organ transplant, kidney failure
Chronic Illness: Inability to perform 2+ activities of daily living, cognitive impairment
Terminal Illness: Life expectancy of 12-24 months or less

It depends on the type of benefit and your policy:
• Critical Illness: Typically 25-50% of death benefit
• Chronic Illness: Usually 2% per month (varies)
• Terminal Illness: Up to 95% of death benefit

Term Life: Covers you for a specific period (10, 20, 30 years). Lower premiums but no cash value. Coverage ends when the term expires.
Permanent Life (Whole/Universal): Provides lifelong coverage, builds cash value, and has higher premiums but never expires as long as premiums are paid.

Yes! Many people have multiple policies to meet different needs. For example, you might have a term policy for temporary needs like a mortgage and a permanent policy for lifelong coverage. You can also have policies from different carriers.

Employer-provided life insurance is a good benefit, but it's usually only 1-2 times your annual salary, which may not be enough for your family's needs. Additionally, if you leave your job, you typically lose that coverage. A personal policy gives you more control and portability.

It depends on the policy type and coverage amount. Traditional term and permanent policies usually require a medical exam for larger coverage amounts. However, we also offer simplified issue and guaranteed issue policies that don't require an exam, though they may have higher premiums or lower coverage limits.

Yes! Many people with health conditions can still get coverage. The type of condition, how well it's managed, and your overall health determine your options. We work with multiple carriers who specialize in different health scenarios to find you the best coverage possible.

Approval times vary:
• Instant/Accelerated: 24-48 hours (no exam, lower amounts)
• Traditional underwriting: 2-6 weeks (includes medical exam)
• Guaranteed issue: 1-2 weeks (no medical questions)

You'll need: personal information (name, address, DOB), Social Security number, medical history, prescription medications, family health history, occupation details, beneficiary information, and financial information (for larger policies).

Beneficiaries should contact the insurance company or Clarity Coverage as soon as possible. They'll need the policy number, a certified death certificate, and a claim form. We help guide beneficiaries through this process to ensure a smooth, timely payout.

Most claims are processed within 30-60 days of receiving all required documentation. For living benefits claims, processing times vary by benefit type and carrier, typically ranging from a few days to a few weeks.

Generally, death benefits paid to beneficiaries are not subject to federal income tax. Living benefits for terminal or chronic illness are typically also tax-free. However, cash value growth in permanent policies may have tax implications. Consult a tax professional for your specific situation.

Costs vary widely based on age, health, coverage amount, and policy type. As an example, a healthy 35-year-old might pay $25-$40/month for $500,000 in term life coverage. Permanent policies cost more but provide lifelong coverage and cash value. Get a free quote to see your personalized rates.

Yes, you can cancel at any time by contacting your insurance company. Term policies have no cash value, so you simply stop paying premiums. Permanent policies may have cash value you can withdraw or borrow against. Some policies have a "free look" period (10-30 days) where you can cancel for a full refund.