Individual Life Insurance

Individual life insurance is a policy you own personally — it follows you regardless of where you work, what happens to your employer, or how your job situation changes. Group life insurance through an employer is convenient but has major limitations: it typically covers only 1–2 times your salary, uses simplified underwriting, and disappears if you leave the company. An individual policy is yours to keep for life, the premium is locked in at your current health rating, and the coverage amount is tailored to your actual financial needs — not a generic multiple of salary. It's the difference between coverage that belongs to your employer and coverage that belongs to you.

Almost everyone with dependents, a mortgage, or financial obligations should own at least some individual coverage. Relying solely on employer group life insurance is risky for several reasons: you lose it if you change jobs, get laid off, or retire; it rarely provides enough coverage; and if your health declines before you leave, you may not be able to get an individual policy later. The ideal approach for most people is to use employer coverage as a supplement and own a separate individual policy as their foundation. Brad can review what you have at work and recommend how much additional individual coverage fills the gap.

The right type depends on what you need the policy to do. Term life is best if you need maximum coverage at the lowest cost for a defined period — covering a mortgage, raising children, or replacing income during your working years. It's pure protection with no savings component. Whole life is best if you want lifetime coverage, a guaranteed premium that never changes, and a cash value component that grows steadily over time — useful for estate planning or leaving a legacy. Universal life is best if you want permanent coverage with more flexibility in premiums and potential for higher cash value growth. Most families start with term; as financial goals evolve, permanent coverage becomes a stronger fit. Brad can walk you through the trade-offs based on your age, income, and goals.

Match the term to the financial obligation you're protecting against. A 10-year term makes sense if you have a relatively short-term need — covering a business loan, a specific debt, or if you're close to retirement. A 20-year term is the most popular choice for young families — it covers the years when children are growing up and the mortgage is being paid down. A 30-year term is ideal if you're young, have young children, or have a 30-year mortgage you want fully covered. The longer the term, the higher the premium — but locking in a longer term while you're young and healthy is almost always the smarter financial move long-term.

The most widely used rule of thumb is 10–12 times your annual income. A more precise method is the DIME formula: Debts (everything you owe excluding the mortgage), Income (your annual salary × the number of years your family needs support), Mortgage (your remaining balance), and Education (estimated college costs for each child). Add those four numbers together and you have a solid coverage target. For example, a 38-year-old earning $65,000 with a $200,000 mortgage, two kids, and $30,000 in debt might need $900,000–$1,000,000 in coverage. Brad will work through this calculation with you at no charge so you know exactly what you're protecting against.

Underwriting is how the insurance company evaluates your risk before issuing a policy. They review your application answers, health history, prescription database records, motor vehicle report, and in many cases a medical exam. Based on this review, they assign you a risk classification — typically Preferred Plus, Preferred, Standard Plus, Standard, or Substandard (rated). Your classification determines your premium. Healthier applicants with clean driving records and no serious medical history get the best rates. Brad prepares every client for the underwriting process so there are no surprises, and he shops multiple carriers to find the one most likely to view your specific health profile favorably.

It depends on the policy type, coverage amount, and your age. Traditional fully-underwritten policies require a medical exam — typically done at your home by a nurse or technician in about 20–30 minutes. It covers height, weight, blood pressure, pulse, and blood and urine samples. The insurance company pays for the exam. Accelerated underwriting has become more common, allowing healthy applicants under a certain coverage threshold (often $1–$3 million depending on the carrier) to skip the exam entirely based on data-driven risk assessment. Simplified issue policies ask health questions but no exam. Guaranteed issue policies require nothing at all but come with higher premiums and lower benefit limits. Brad will identify which underwriting path makes the most sense for you.

It varies by policy type and underwriting path. Guaranteed issue and simplified issue policies can be approved same-day or within a few days. Accelerated underwriting (no exam) for healthy applicants often takes 1–2 weeks. Fully underwritten policies requiring a medical exam typically take 4–8 weeks from application to approval — the exam itself is quick, but waiting for lab results and medical records takes time. Once approved, your coverage is in force as soon as you make your first premium payment. If you have an urgent need for coverage, Brad can identify carriers known for faster turnaround times.

Yes, outright denials do happen — typically due to serious health conditions, high-risk occupations or hobbies, a poor driving record, or recent financial issues. However, a denial from one carrier doesn't mean you can't get coverage elsewhere. Different insurance companies underwrite risk differently, and an independent agent like Brad who works with multiple carriers can often find a policy where a captive agent tied to one company cannot. If traditional underwriting isn't an option, guaranteed issue and graded benefit policies exist specifically for people who have been declined elsewhere. A denial is a starting point for finding the right solution, not a dead end.

Your premium is shaped by several factors: Age — the single biggest factor; premiums increase every year you wait. Health — current conditions, medical history, height/weight ratio, and prescription history all play a role. Gender — statistically, women live longer and pay lower premiums. Tobacco use — smokers pay significantly more, often 2–3x the non-smoker rate. Coverage amount — higher death benefits cost more. Policy type and term length — permanent policies and longer terms cost more than short-term policies. Occupation and hobbies — high-risk jobs or activities like skydiving or racing can raise premiums. Because carriers weigh these factors differently, Brad shops multiple companies to find the one offering the best rate for your specific profile.

In almost all cases, no. Life insurance death benefits paid to individual beneficiaries are received income-tax-free under federal law. This is one of the most valuable features of life insurance — a $500,000 policy pays your beneficiary $500,000, not $500,000 minus taxes. There are a few exceptions: if the death benefit is paid to your estate rather than a named beneficiary, it may be subject to estate taxes in very large estates. Interest earned on a delayed payout may also be taxable. For the vast majority of Wisconsin families, the full death benefit goes to your loved ones tax-free. Brad can refer you to a tax professional if you have estate planning questions related to your policy.

Every life insurance policy sold in Wisconsin comes with a free-look period — typically 10 to 30 days from when you receive the policy — during which you can review it in full and cancel for any reason with a complete refund of premiums paid. After the free-look period, you can still cancel at any time, but you generally won't receive a refund of premiums for term policies. For permanent policies with cash value, surrendering the policy returns whatever cash value has accumulated minus any surrender charges that may apply in the early years. There is no penalty for canceling a term policy — you simply lose coverage going forward.

Nothing changes to the policy itself — that's the whole point of individual coverage. Your policy stays in force regardless of job changes, marital status, or family growth. What you should do after major life events is review whether your coverage amount is still adequate. Getting married, having a child, buying a home, or taking on new financial obligations are all reasons to consider increasing your coverage. You'll also want to update your beneficiary designation to reflect any changes in your family situation. Brad recommends an annual policy review to make sure your coverage keeps pace with your life.

Possibly — it depends on your policy. Some individual policies include a Guaranteed Insurability Rider (GIR) that lets you purchase additional coverage at specified future dates or life events (marriage, birth of a child, home purchase) without proving insurability. This is a valuable rider to add when you're young and healthy, as it locks in your right to buy more coverage regardless of any health changes that occur later. Without this rider, increasing coverage typically requires a new application and underwriting. If you don't have a GIR and need more coverage, Brad can help you apply for a new supplemental policy alongside your existing one.

When a term policy reaches the end of its term, coverage simply ends. You have a few options: let it lapse if you no longer need coverage (kids are grown, mortgage is paid, retirement is funded); renew the policy annually — most term policies allow this, but at a much higher premium based on your current age; or convert to a permanent policy if your policy includes a conversion rider, which most do. Conversion lets you switch to whole or universal life without a new medical exam — your current health rating doesn't matter. This is a powerful option if your health has changed since you first bought the policy. The conversion window is typically available up to a certain age or a certain number of years into the term. Brad can review your existing policy and help you plan ahead before your term expires.