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Life Insurance Frequently Asked Questions

» How long does it take to get life insurance?

Term Life InsuranceLIFE INSURANCE QUOTEApplying for life insurance can sometimes be a lengthy process. Typically, the life insurance application itself can be filled out over the phone with the help of a licensed agent. After the application is submitted to the insurance carrier, however, the long process begins. Most insurance companies require a medical exam, blood test, and urinalysis as a part of their underwriting process. Your insurance agent will work with you to schedule the no-cost medical exam around your schedule. After your medical exam is complete, it can take up to 4 weeks for the confidential results to be sent to the insurance company. The insurance company then reviews the application, medical exam results, medical history and even the applicant’s driving record. In some cases, the insurance company will request additional information from the applicant’s doctor. Once the insurance company has completed its review, it will make a decision whether or not to offer coverage, as well as the rating at which it will offer coverage to the applicant. Many applicants are surprised that this process can take beyond 9 weeks.

No Medical Exam Life Insurance

Some insurance companies offer life insurance coverage with simplified medical underwriting or with no medical exam. Life insurance applications submitted through a non-medical exam approach are usually approved much faster than the typical process described above. In some cases a non-med life insurance policy can be issued within a week of submitting the application. It is important to consider that no medical-exam life insurance policies usually cost more and a screening of medical history is almost always performed before the policy issues. Be sure to let your agent know if your main concern is getting life insurance coverage fast, as a non-med life insurance policy might be your best option.

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» How much life insurance should I buy?

There are many factors to consider when determining how much life insurance to buy. Our Life Insurance Needs Calculator  can be a helpful tool when determining how much insurance you should buy.

Of course, another important factor to consider is the cost of the life insurance policy. Request quotes for life insurance coverage today and we will help you compare rates from numerous insurance carriers so you can choose the most cost effective coverage.

» Why do people buy life insurance?

Term Life InsuranceLIFE INSURANCE QUOTEPeople buy life insurance for a number of reasons. One of the primary reasons is providing income protection for a family in the event a breadwinner passes away. Another reason is providing financial security for children should something happen to the parents. Life insurance can even be a way to offset estate taxes in large estate plans.

Another reason some people buy life insurance is to save for retirement. The cash value in some permanent life insurance policies can grow tax deferred and the cash value can be borrowed at a later date. When using life insurance as a cash savings vehicle it is important to understand the internal fees and guarantees that are built into the policy.

Montana Life Group rarely recommends the use of life insurance as a savings vehicle. Our stance is that life insurance should be used as a tool for financial protection in case of death. While cash value policies can be attractive investments for some people, Montana Life Group is not in the business of helping with investments. Instead our focus is on providing financial protection in the most cost-effective way possible.

When deciding whether or not to buy a life insurance policy it is important to start by determining the purpose of the life insurance policy and the amount of desired coverage. At Montana Life Group we have a process that can help you determine just how much life insurance is needed and the term length you should consider buying. Of course it is also important to consider the monthly cost of the insurance and the financial strength of the underwriting insurance carrier.

Life Insurance Needs Calculator


» What is life insurance?

Life insurance is financial protection that pays beneficiaries when the insured dies. There are several types of life insurance including term and permanent life. Term life pays a lump sum benefit during a specified period of time (typically 10 years, 20 years, or 30 years). Permanent coverage is designed to provide insurance coverage for a person’s entire life.

Life insurance can be extremely important for a family looking for financial protection in case of tragedy. It can also serve as a way to minimize the financial impact of estate taxes when building a robust estate plan.

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» How are life insurance proceeds taxed?

Most of the time, life insurance death benefit proceeds are not taxable as income. There are some exceptions to this rule. Some life insurance policies give the beneficiary the option of receiving monthly payments for life (like an annuity) rather than a lump sum. In this case the interest received above the initial benefit amount is taxable as income.

In the case of large estate plans it is important to consider that life insurance death benefits are considered part of the estate if the deceased is the owner of the policy within three years of their death. Estate taxes are currently levied on estates valued higher than $5.25 million1. One way to ensure that heirs are able to pay estate taxes is by setting up an irrevocable life insurance trust. Irrevocable life insurance trusts are complex and it is extremely important to make sure they are set up correctly. At Montana Life Group we recommend a team approach to estate planning. We have relationships with CPAs and Estate Planning Attorneys, allowing us to provide our clients access to the expertise needed for this type of complex planning.

  1. Current as of 5/30/13, ref. American Taxpayer Relief Act Rev. Proc. 2013-15

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Life Insurance for Family Protection

Life Insurance


Life insurance is extremely important if someone depends on you financially. Montana Life Group has partnered with Lakeview Financial to form a team of advanced experts who know the life insurance industry and have access to the most competitive carriers. Together, our focus is the financial protection of our clients. We recommend life insurance as a cornerstone of responsible family financial planning.  On our website you can apply for life insurance online or request a custom quote from one of our agents.  If you are looking to provide life insurance for your employees, we also offer group life insurance programs.

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Apply for Life Insurance Over the Phone

At Montana Life Group we recognize that your time is valuable. That’s why our agents are able to help you apply for life insurance online from the comfort of your home.  But, of course, if you’d like to meet a Montana Life Group agent in person, we’re happy to schedule an appointment. In the meantime, feel free to run a custom life insurance quote or give us a call at 406-548-3135 or toll free at 888-505-3822.  We’re always happy to help!

Term Life Insurance

As you might expect, term life insurance lasts for a set period of time, which can range anywhere from 1 to 30 years. If you should pass away during that period of time, your beneficiaries are paid the value of the policy. Term life insurance might be a great option for a young family, allowing parents to protect their children until they are old enough to provide for themselves.

What Length of Term Life Insurance Should I Apply For?

It depends why you are buying the life insurance and what your long term goals are. If you are buying term life insurance to protect your young family then you might consider a 20 or 30 year term policy. We typically recommend a policy with a term length long enough to reach your youngest child’s 25th birthday. If you have a non-working spouse you should consider buying a longer term policy that would help with your spouse’s eventual retirement.

You might apply for a shorter term policy (like 5 or 10 years) if your family insurance needs are taken care of but you take on a new debt obligation. An example would be a financially fit 45 year old who buys a commercial building with a 10 year mortgage and balloon payment. An inexpensive 10 year term policy can cover the new debt obligation. If you are looking for insurance for a specific need like the one in this example you should request a custom life insurance quote and our agents will be happy to help you find the right policy.

How Much Term Life Insurance Should I Buy?

There are a lot of factors that go into determining how much term life insurance to buy. You should consider your family’s future income needs, cost of children’s education and outstanding debt. We have a useful way to determine how much term life insurance you need with our life insurance calculator tool. You may be surprised by how inexpensive life insurance can be, especially if you lock in your policy while you’re young.

Permanent Life Insurance

A permanent life policy can last for your entire life if the premiums are paid up and the policy does not lapse. Some permanent policies include dividend payments. The policy may build a cash value that you can borrow against. There are many types of permanent policies including whole life, universal life, indexed-universal life and variable life. Not all permanent policies are designed for building a cash value. Some permanent policies are designed simply to be low cost life insurance that lasts your entire life – like a term policy where the “term” is “your entire life.”

Return of Premium Life Insurance

A “return of premium” (ROP) life insurance policy is designed to provide coverage for a specific term and then refund all premiums paid at the end of the term if the policy is still in force and the insured is still alive. This is a great type of insurance for a person who needs a term policy but hates the thought of throwing money away if the the policy is never used. ROP policies typically have term lengths between 15 and 30 years. Basically, after the term is up you get a big check in the mail refunding all of your paid premiums if you are still alive. We can provide a quote for ROP insurance here.

Should I Buy Permanent Life Insurance As An Investment?

We do not recommend buying life insurance as an investment. First of all, insurance products are not investments and they should only be purchased for protection related needs. Also, a lot of the cash value type life insurance policies like universal life, indexed universal life, and whole Life have confusing provisions and a lack of transparency that make them difficult to understand for the average investor. These cash value policies can have internal fees which erode the investment return over time. In short, we feel there are better places to invest your money than life insurance. If you are looking to save and grow money for retirement you might want to check out annuities.

Why Should I Buy Permanent Life Insurance?

You should buy permanent life insurance if you want the protection to last for your entire life. We work with a specific type of permanent life insurance that is designed to be inexpensive and last for your entire life. This type of policy is not designed to accumulate a significant cash value. You might buy this type of policy if you don’t like the idea of paying for a term life insurance policy for 20 or 30 years and then losing the coverage. The premiums for this type of permanent life insurance can be surprisingly low. Request a custom life insurance quote and one of our agents will help find a permanent life insurance policy that’s right for you.

Final Expense Life Insurance

Final expense coverage provides money to help with the cost of burial and other final expenses. Final expense coverage is a permanent life insurance policy with a smaller death benefit than usual. The amount of coverage on a final expense policy is usually between $5,000 and $30,000. You can request a custom quote for final expense coverage.

Life Insurance
Service Type
Life Insurance
Provider Name
Montana Life Group,
Available in most states.
Life insurance is extremely important if someone depends on you financially. At Montana Life Group our focus is financial protection. We recommend life insurance as a cornerstone of responsible family financial planning.

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