Got Questions? We’ve Got Answers.
Navigating insurance and financial planning can feel overwhelming—but it doesn’t have to be. Our FAQ section is designed to answer your most common questions about life insurance, annuities, Medicare, retirement strategies, and more. Whether you’re just starting to explore your options or looking to fine-tune an existing plan, we’re here to help you make confident, informed decisions every step of the way.
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A true bonus is an upfront percentage added directly to your account value—it’s real money that can be withdrawn under the contract terms. A benefit base bonus, on the other hand, is only used to calculate income benefits like guaranteed lifetime withdrawals. It does not increase your actual cash value or amount available for withdrawal.
👉 Visit our annuity rate page here to compare today’s best bonus annuity offers.
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Qualified annuities are funded with pre-tax dollars (like from a 401(k) or IRA), so all withdrawals are taxable as income.
Non-qualified annuities are funded with after-tax dollars, meaning only the growth is taxed when withdrawn.
Transfers between annuity contracts using a 1035 exchange (non-qualified) or trustee-to-trustee transfer (qualified) are tax-deferred if done correctly.
👉 Explore annuity transfer options here.
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A SPIA begins income payments immediately in exchange for a lump sum, with fixed payment amounts.
A GLWB rider is added to a deferred annuity, allowing guaranteed lifetime withdrawals while keeping access to growth and remaining account value.
👉 Learn more and get a quote for lifetime income here.
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Some annuities—like fixed or fixed indexed annuities—often have little or no annual fees. Others, especially those with riders (like income or enhanced death benefits), may include annual charges.
👉 See transparent, low-fee annuity options here.
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Surrender charges are fees applied for withdrawing more than the penalty-free amount or cancelling your contract early. These usually apply during a surrender period (often 5–10 years), but many annuities allow 10% annual withdrawals without penalty.
👉 Compare annuities with low or no surrender fees here.
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Commissions are paid by the insurance company, not deducted from your account. You receive 100% of your initial premium into the annuity, and there are no extra costs to work with us.
👉 Get a no-obligation annuity quote here.
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No—lifetime income means exactly that. Payments continue for as long as you live, and with joint annuities, your spouse may also receive income for life. Even if your account value reaches zero, the payments continue.
👉 Get a personalized quote for lifetime income here.
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Many financial advisors operate under a fee-based model, meaning they charge a percentage of the assets they manage. Since annuities are insurance products, not investment accounts, funds placed into annuities typically don’t stay under the advisor’s management—which means they may no longer earn fees on that portion of your portfolio.
As a result, some advisors discourage annuities, not because they’re bad products, but because they don’t align with their compensation structure. At Diversified Insurance Brokers, we’re independent and product-neutral. That means we’ll only recommend an annuity if it’s the right tool for your goals, and we’ll always help you compare income guarantees, tax advantages, and market protection features with other financial options.
👉 Visit our annuity rate page here to explore options that fit your retirement needs.
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Burial insurance, also known as final expense insurance, is a small whole life insurance policy designed to cover end-of-life expenses such as funeral costs, medical bills, or outstanding debts. It offers a simple, affordable way to protect your family from unexpected financial burdens during a difficult time.
👉 Get a burial insurance quote here
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Most people choose coverage between $5,000 and $25,000, depending on funeral costs and any outstanding debts. We’ll help you determine the right amount based on your budget and goals.
👉 Get a burial insurance quote here
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Burial insurance provides smaller coverage amounts with simplified underwriting—perfect for covering final expenses. Traditional life insurance is often used for larger financial goals like income replacement or estate planning.
👉 Get a burial insurance quote here
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No. Most burial policies require no medical exam—just a few health questions. Some even offer guaranteed acceptance, regardless of health history.
👉 Get a burial insurance quote here
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There are level benefit policies (full coverage from day one) and graded or guaranteed issue policies (limited benefits in the first 2 years). We’ll guide you to the option that fits your needs.
👉 Get a burial insurance quote here
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No. With most burial insurance plans, your premiums are fixed for life and will never increase—your coverage remains in place as long as you pay your premiums.
👉 Get a burial insurance quote here
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Yes. You can purchase burial insurance for a parent, spouse, or other loved one with their consent. We’ll help you navigate the process to ensure everything is set up properly.
👉 Get a burial insurance quote here
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No. The death benefit is generally paid out tax-free to your beneficiary, who can use the money for any purpose—not just funeral expenses.
👉 Get a burial insurance quote here
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Most burial insurance claims are paid within 24 to 72 hours of receiving the required documentation, giving your family fast access to funds when they need them most.
👉 Get a burial insurance quote here
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Yes. The death benefit can be used for medical bills, debts, or simply to provide financial relief to your loved ones—there are no restrictions on how the money is spent.
👉 Get a burial insurance quote here
Long Term Care Insurance FAQs
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Long-term care (LTC) insurance helps cover the cost of services that assist with daily activities like bathing, dressing, eating, and mobility. It pays for care provided in the home, an assisted living facility, adult day care, or a nursing home—expenses typically not covered by Medicare or traditional health insurance.
👉 Get a long-term care insurance quote here
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The best time to buy is typically in your 50s or early 60s, when premiums are lower and you’re more likely to qualify for coverage. Waiting until health issues develop can make coverage more expensive—or even unavailable.
👉 Get a long-term care insurance quote here
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LTC insurance covers services that help with activities of daily living (ADLs) such as bathing, dressing, eating, using the toilet, transferring, and maintaining continence. It also pays for custodial care in various settings, including in-home care, assisted living, nursing homes, and adult day care.
👉 Get a long-term care insurance quote here
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No. Medicare only covers short-term skilled nursing care after a hospital stay, not long-term custodial care. Medicaid may help—but only if you meet strict income and asset requirements.
👉 Get a long-term care insurance quote here
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LTC costs vary by location and type of care. On average, nursing home care can cost $8,000 to $12,000 per month, while in-home care or assisted living may range from $4,000 to $6,000 per month. LTC insurance helps reduce or eliminate this financial burden.
👉 Get a long-term care insurance quote here
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Traditional LTC insurance offers standalone coverage with lower premiums—but if you don’t use the benefits, there may be no payout.
Hybrid policies combine LTC coverage with life insurance or an annuity, providing a death benefit or cash value if care isn’t needed—offering more flexibility and value.
👉 Get a long-term care insurance quote here
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It depends on the severity of the condition. Some insurers may approve your application with higher premiums or limited benefits, while others may decline coverage. Applying while you’re still relatively healthy gives you the best chance at affordable rates.
👉 Get a long-term care insurance quote here
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The elimination period is like a deductible—it’s the waiting period (typically 30 to 180 days) before your benefits begin. During this time, you’re responsible for paying out-of-pocket. Policies with longer elimination periods generally cost less.
👉 Get a long-term care insurance quote here
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Traditional LTC policies can increase over time if the insurance company receives approval from the state to raise rates. Hybrid policies, on the other hand, often come with guaranteed premiums that never increase.
👉 Get a long-term care insurance quote here
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Yes—if you’re concerned about protecting your assets, avoiding burdening family members, and ensuring access to quality care. LTC insurance provides financial security and flexibility, giving you more choices about where and how you receive care.
👉 Get a long-term care insurance quote here
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A benefit period is the length of time your long-term care insurance will pay for covered services once you begin receiving care. It typically ranges from 2 years to lifetime coverage, depending on the policy you choose.
For example, if you have a 3-year benefit period and your daily benefit is $200, your policy would cover up to $219,000 in total benefits ($200 × 365 days × 3 years). Once that amount is used, the policy ends—even if you still require care.
👉 Get a long-term care insurance quote here to compare benefit periods and find the plan that fits your needs.
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Medicare is a federal health insurance program for individuals aged 65 and older, and for some younger individuals with disabilities or End-Stage Renal Disease (ESRD). It consists of different parts covering hospital care (Part A), medical services (Part B), prescription drugs (Part D), and optional Medicare Advantage (Part C) plans.
👉 Visit our Medicare page here
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Part A: Hospital insurance
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Part B: Medical insurance
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Part C (Medicare Advantage): Combines Parts A and B, often with additional benefits
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Part D: Prescription drug coverage
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Medigap (Supplement): Optional plans to help cover out-of-pocket costs in Original Medicare
👉 Visit our Medicare page here
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Medicare Part A is usually premium-free if you or your spouse paid Medicare taxes for 10+ years. Part B, Part D, and Medicare Advantage plans have monthly premiums, which vary based on income and coverage.
👉 Visit our Medicare page here
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Original Medicare includes Part A and Part B, with optional Part D and Medigap. Medicare Advantage (Part C) is an all-in-one alternative offered by private insurers, often including dental, vision, and drug coverage.
👉 Visit our Medicare page here
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You can enroll during the Initial Enrollment Period (3 months before and after your 65th birthday month), or during Open Enrollment (Oct 15–Dec 7) and General Enrollment (Jan 1–Mar 31) if you missed your first opportunity.
👉 Visit our Medicare page here
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Missing your enrollment window may result in late penalties and delayed coverage, especially for Parts B and D. It’s important to enroll on time—even if you’re still working—to avoid lifelong penalties.
👉 Schedule a call with a Certified Medicare Planner
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Medigap plans help cover out-of-pocket expenses in Original Medicare, such as deductibles, copayments, and coinsurance. They’re a great fit if you want to avoid surprise bills and keep provider flexibility.
👉 Visit our Medicare page here
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Yes. If you’re still working, you can coordinate Medicare with your employer’s health plan. Depending on the size of your employer, Medicare may act as either the primary or secondary payer. Understanding how your benefits work together is crucial to avoid coverage gaps or unnecessary expenses.
👉 Visit our Medicare page here to learn more
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Original Medicare does not cover routine dental, vision, or hearing services. Some Medicare Advantage plans offer these benefits. We can help you explore plans that include the extras you care about.
👉 Visit our Medicare page here
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The two primary types are term life and permanent life insurance. Term life provides coverage for a set period (e.g., 10, 20, or 30 years), while permanent life insurance (such as whole or universal life) lasts a lifetime and may accumulate cash value.
👉 Get a quote on our Life Insurance Page
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Your coverage amount should reflect your financial responsibilities—like mortgage, income replacement, education costs, and final expenses. A good rule of thumb is 10 to 15 times your annual income, but our team can help you determine the right amount based on your goals.
👉 Get a quote on our Life Insurance Page
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Not always. Many policies offer simplified underwriting with no exam required—especially for lower coverage amounts. Others may require labs and medical history to qualify for better rates.
👉 Get a quote on our Life Insurance Page
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If you stop paying, term policies typically lapse after a grace period. Permanent policies may use built-up cash value to keep coverage active temporarily, but long-term nonpayment could lead to cancellation.
👉 Get a quote on our Life Insurance Page
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Absolutely. Many clients layer term and permanent coverage or buy separate policies for different needs like mortgage protection, income replacement, or legacy planning.
👉 Get a quote on our Life Insurance Page
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Group life (offered through employers) is often limited in coverage and may end when your job does. Individual life insurance offers more flexibility, portability, and control.
👉 Get a quote on our Life Insurance Page
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Yes, especially if you own a permanent policy. You may be able to change coverage amounts, riders, or payment schedules. Term policies are less flexible, but many are convertible to permanent.
👉 Get a quote on our Life Insurance Page
Use our Risk Score Calculator to determine your portfolio’s overall risk level, and the Contact Us Form to help figure out how to reduce your risk.
Additional Resources to Empower Your Retirement Planning
Want to go deeper?
Explore our expert videos on YouTube for clear, unbiased guidance on retirement topics — or use our Lifetime Income Calculator to estimate how long your savings could last and identify potential income gaps.
Visit our YouTube Channel for more helpful insurance answers!
Use our calculator below to determine your guaranteed lifetime income
Frequently Asked Questions
What is the difference between a true bonus and a benefit base bonus?
A true bonus is an upfront percentage added directly to your account value—it increases your cash value under the contract. A benefit base bonus is used only for calculating income benefits (like Guaranteed Lifetime Withdrawal Benefits), and does not increase your cash value or available withdrawal amount.
How are annuities taxed, and what is the difference between qualified and non-qualified?
Qualified annuities are funded with pre-tax dollars (e.g. from a 401(k) or IRA), and withdrawals are taxed as ordinary income. Non-qualified annuities are funded with after-tax dollars; only the growth portion is taxed when withdrawn. Transfers like 1035 exchanges (non-qualified) or direct trustee rollovers (qualified) preserve tax deferral if done properly.
What is the difference between a SPIA and an annuity with a GLWB rider?
A SPIA (Single Premium Immediate Annuity) begins paying a fixed income immediately in exchange for a lump sum. An annuity with a GLWB (Guaranteed Lifetime Withdrawal Benefit) is deferred; it allows you to withdraw guaranteed income for life while retaining access to growth and account value before taking income.
Are annuities FDIC insured?
No. Annuities are insurance products and are not protected by the FDIC. Instead, they are backed by the insurer’s claims-paying ability and may have protection through your state guaranty association with certain limits.
What fees are associated with annuities?
Some annuities, especially fixed or fixed indexed, may have little or no annual fees. Others include charges for riders, enhanced death benefits, or other features. Be sure to review all cost disclosures before purchasing.
Do annuities offer death benefits?
Yes. Most annuities include a death benefit which provides your beneficiaries with remaining account value. Some contracts offer enhanced or guaranteed death-benefits as optional riders.
What are surrender charges?
Surrender charges are fees if you withdraw more than the penalty-free amount or cancel your contract during the surrender period (often 5-10 years). Many annuities allow a free withdrawal (e.g. 10%) annually in this period.
How does lifetime income from an annuity work?
Lifetime income means payments continue for as long as you live—and with joint-life options, paid to your spouse after your passing. Even if your account value goes to zero, payments still continue under a guaranteed lifetime payout design.
Why do some advisors not recommend annuities?
Some advisors use fee-based models which earn more from assets under management rather than insurance products. Annuities move money into insurance instruments, which means they may not receive future fees on those assets. That doesn’t make annuities bad—it means some advisors may be biased by their compensation structure.
About the Author:
Jason Stolz, CLTC, CRPC and Chief Underwriter at Diversified Insurance Brokers
(NPN 20471358),
is a senior insurance and retirement professional with more than two decades of real-world
experience helping individuals, families, and business owners protect their income, assets,
and long-term financial stability. As a long-time partner of the nationally licensed independent
agency Diversified Insurance Brokers, Jason provides trusted
guidance across multiple specialties—including
fixed and indexed annuities,
long-term care planning,
personal and business disability insurance,
life insurance solutions,
Group Health,
and short-term health coverage.
Diversified Insurance Brokers maintains active contracts with
over 100 highly rated insurance carriers, ensuring clients have access to a
broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as
VoyageATL,
highlighting his commitment to financial clarity and client-focused planning. Drawing on deep
product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers,
compare strategies, and build retirement and protection plans that are both secure and
cost-efficient. Visitors who want to explore current annuity rates and compare options across
multiple insurers can also use this
annuity quote and comparison tool.
