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#### What is Life Insurance?

Life insurance protects your loved ones when you pass away. A life insurance policy is a private contract between you and an insurance company. In the policy agreement, you agree to make premium payments in exchange for a coverage amount to be paid out if you die while the policy is active. The policy is legally binding and regulated by the Departments of Insurance in all 50 states to ensure the insurance company will be in a position to pay out your coverage amount.

Learn more by visiting our Guide to Life Insurance.

#### Do I Need Life Insurance?

At a foundational level, life insurance offers you and your loved ones protection in the event of your passing. If someone relies on you for financial support or would need financial resources if you weren't there, then purchasing life insurance is probably a smart decision.

#### What type of life insurance do I need?

The answer to this question depends on several factors. If you’re looking for lifetime coverage that offers you the chance to build tax-efficient wealth, then permanent life insurance (specifically Indexed Universal Life or Variable Universal Life insurance) is likely the right type for you. If you are looking for a more affordable option that provides short-term coverage, then Term Life Insurance may be better for you. Additionally, if you want protection in the event of chronic, critical, or terminal illness, or you need long term care support, then it’s wise to consider which life insurance type will provide the appropriate riders for your needs.

#### I have life insurance through work. Is it enough?

No, it is highly likely your employer-sponsored coverage is not enough. The coverage only lasts while you are employed and doesn’t provide additional protections. We recommend purchasing a policy you own as your primary coverage.

Check out this blog post to learn more.

#### What is the "coverage" amount?

The coverage amount of a life insurance policy is the amount of money the policy will pay out to the designated beneficiary (or beneficiaries) if the policyholder dies while the policy is active. This amount is typically determined by the policyholder. Higher coverage amounts will cost the policyholder more in premiums, so it’s important to be thoughtful about determining the appropriate coverage amount when buying a life insurance policy.

#### How much life insurance coverage do I need?

Financial advisors recommend that you have enough savings and life insurance coverage to equal at least five to ten times your annual salary. That is the recommended minimum amount. If you have already built up enough savings to provide that safety net on your own - then great work! However, the vast majority of people are busy building a life and don't reach that point until they are in their retirement years. Life insurance is the foundation of proper financial planning and can help you protect your family’s future.

#### What is covered by life insurance?

The short answer is, most things. Included below are some common questions we get that are covered:

Accidents: Yes, accidents (such as car crashes, freak accidents) are covered.
Natural Illnesses: Yes, cancer, heart attack, stroke, rare diseases, etc. are all covered by life insurance. You don’t get penalized for getting sick. This is why you purchase insurance.
Pandemics: Yes, they’re covered. Pandemics are not among the very limited exclusions (reason a claim would not be paid) for the policies and carriers we work with.

#### What is not covered by life insurance?

You can check your policy for the exact list of exclusions, however, below are cases where policy proceeds to your beneficiary would not be paid:

Suicide within 2 years (unless state law requires that period to be shorter)
False Statements by Applicant
Insurance Fraud
Special Limitations( carrier specific)

That last bucket can contain various items that may be handled by a special add-on to a policy called a “ rider”.

#### When is the best time to buy life insurance?

Here are some common life events when it’s a good idea to review your life insurance coverage and start shopping:

You start your career (if you have significant private student debt with co-signers)
You get married
You buy a home (with a mortgage)
You have a new baby on the way
You start a business

Life insurance gets more expensive the older you get. The younger and healthier you are when you get started, the easier it is to qualify for coverage and decrease the risk of a higher rate or not qualifying due to unforeseen health issues.

#### What is a beneficiary?

A person or entity designated to receive the death benefit from a life insurance policy. The policyholder chooses the beneficiary when they purchase the policy. The beneficiary can be changed at any time by the policyholder. Upon the death of the insured, the death benefit is paid to the designated beneficiary. This can be a single person, multiple people, or an organization.

#### What is a death benefit?

The death benefit of a life insurance policy is the payment made by a life insurance carrier to the designated beneficiary or beneficiaries upon the death of the insured person. Death benefits are not taxed so the full amount goes to the designated beneficiaries according to the policyholder’s desired allocation plan.

#### How long do I need life insurance?

That depends on how long you want to ensure your loved ones will receive financial support if you pass away. Most people typically plan to have some form of life insurance coverage at least until they retire. One reason we at Amplify usually recommend Indexed Universal Life or Variable Universal Life insurance is they are types of permanent life insurance, meaning the coverage lasts the entire lifetime of the policyholder. With these types of policies your beneficiaries will be taken care of no matter when you pass.

#### How much does life insurance cost?

The cost of your policy will depend primarily on the type of policy you purchase, your age, health, and your desired coverage amount. It’s difficult to say how much it will cost for you without knowing more about you. However, lower coverage amounts will generally result in lower premiums. The amount you pay in premiums may or may not change over time depending on the type of policy you choose (e.g Term policy premiums don’t change whereas IUL or VUL premiums can be flexible).

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#### What are the different types of life insurance?

There are many different types of life insurance to choose from. The most common types consumers purchase are Term Life Insurance, Permanent Life Insurance, or a Combination Policy. What you purchase ultimately depends on your needs and a variety of factors, including how long you need coverage for, how much you want to pay, and whether you’re looking to build cash value over time.

#### What is Term Life Insurance?

Term Life Insurance is a type of life insurance policy that provides coverage for a specific period of time, or " term." If the policyholder dies during the term, the policy pays out a death benefit to the beneficiary. If the policyholder does not die during the term, the policy does not pay out and the coverage ends on the expiry date.

Term Life Insurance is typically less expensive than Permanent Life Insurance, however, it does not build cash value or offer tax-advantaged savings like certain types of Permanent Life Insurance.

Visit our Term Life product page to learn more.

#### What is Permanent Life Insurance?

Permanent Life Insurance is a type of life insurance policy that provides coverage for the entirety of the policyholder's lifetime* as long as the policy remains active. Permanent Life Insurance policies also have a savings component, known as the cash value, which accumulates over time and can be accessed by the policyholder during their lifetime. There are several types of Permanent Life Insurance, including Whole Life Insurance and Universal Life Insurance.

*Policies typically mature, meaning they pay out the benefit amount, if the policyholder lives to be 120 or 121 years old (could be shorter, depending on the policy).

#### What Is Universal Life Insurance?

Universal Life Insurance is a type of Permanent Life Insurance that provides flexible premiums and the ability to adjust the death benefit. It combines the features of Term Life Insurance, which provides protection for a specific period of time, with the savings element of Permanent Life Insurance, which builds cash value over time. There are several types of Universal Life Insurance, a couple of which we can dive deeper on are:

See the individual FAQs for each type to learn more.

#### What is Indexed Universal Life (IUL) Insurance?

A type of Permanent Life Insurance that provides coverage for the entire lifetime* of the insured, as long as the policy is in force and premiums are paid. It is similar to Guaranteed Universal Life Insurance in that it also provides a death benefit to the beneficiaries of the policy and also accumulates cash value over time. Rather than earning a fixed interest rate the cash value of an IUL policy is tied to a stock market index, such as the S&P 500. Usually, the cash value of the policy will increase when the stock market index increases, but will not decrease when the stock market index decreases. This means that the cash value of the policy has the potential to increase (up to a cap stated in the policy) at a faster rate than Guaranteed or Fixed Universal Life Insurance. IUL policies also have a minimum guaranteed interest rate, which means that the cash value will not decrease below a certain level.

Visit our IUL product page to learn more.

#### What is Variable Universal Life (VUL) Insurance?

A type of Permanent Life Insurance that provides both a death benefit and a savings or investment component. It is similar to Indexed Universal Life Insurance but with the added feature of allowing policyholders to allocate their cash value into different investment options, such as mutual funds. One of the main advantages of VUL insurance is that it allows policyholders to participate in the potential growth of the stock market or other securities, and also allows them to have more control over the investment options of their cash value.

Visit our VUL product page to learn more.

#### What is the difference between VUL and IUL?

The main difference between VUL and IUL is the way the cash value account works.

With a VUL policy you can invest your cash value in a variety of sub accounts - which are like mutual funds. Your policy cash value can increase or decrease depending on the performance of the sub accounts. This means VULs are more risky but potentially more lucrative.

IULs, however, receive credits based on the performance of a market index (e.g. S&P 500). IUL policies have a floor on losses ( usually 0%, meaning no loss of cash value if the price of the index decreases) and a ceiling on gains (e.g 8-9%, meaning if the chosen index goes up 20% in a year, the policyholder only receives about half of those gains). This trade off of lower gains for no downside is appealing to policyholders who want the potential to earn high credits, but do not wish to take on the risk of losses. Carriers may offer a variety of indexes to track and a variety of ways that credits are calculated based on the index.

#### What are the advantages of Universal Life Insurance?

Universal Life Insurance offers several advantages over Term Life Insurance, including:

Flexible Premiums: Unlike other types of life insurance, Universal Life Insurance allows policyholders to adjust the premium amount and payment frequency based on their changing financial situation.
Cash Value Accumulation: Universal Life Insurance policies have a cash value component that grows over time, based on interest rates and investment returns.
Tax Benefits: The cash value of a Universal Life Insurance policy grows tax-deferred, meaning that policyholders do not pay taxes on the earnings until they withdraw them.
Permanent Coverage: Universal Life Insurance provides coverage for the insured's entire lifetime*, as long as premiums are paid.
Customizable Death Benefit: Universal Life Insurance policies typically allow policyholders to adjust the death benefit amount over time. This can be useful for those who want to increase or decrease their coverage based on changes in their financial situation.

Learn more about how Universal Life Insurance compares to other insurance and wealth building vehicles in our Guide to Life Insurance.

#### When should I consider Universal Life Insurance as part of my insurance plan?

There are several factors that can help determine whether Universal Life Insurance is right for you at this stage of your life, but here are the high-level criteria to help you determine if this tool is right for you:

Are you looking for a death benefit ? First and foremost, Amplify only recommends Universal Life Insurance to those looking for some form of coverage in the event of their death. If you’re only considering Universal Life for its cash value savings component then it’s probably not the best option for you.
Do you have sufficient free-cash flow? Because Universal Life Insurance has higher premiums than Term Life Insurance, Amplify typically only recommends Universal Life Insurance to those who can afford the higher monthly payments. If money is tight, or your income is highly variable then there are other ways to get coverage that might work better for you.
Does it make sense for you at this stage of life? There are several tax-advantaged accounts that are great tools for building wealth. Your life situation typically determines which of these accounts you can leverage. For example, if you are able to contribute to a 401k through your employer, Amplify typically recommends you contribute to that account first, especially if your employer offers some kind of matching. Ultimately, which tax-advantaged vehicles you leverage as part of your holistic financial plan really depends on your goals, risk tolerance, stage of life, and several other factors.

Ultimately, we’ve seen Universal Life Insurance work well for clients of all different types. If you’re unsure whether Universal Life is right for you, check out our website or give us a call. We can offer personalized recommendations that are right for you.

#### Is Whole Life Insurance the same as Universal Life Insurance?

No, Whole Life is not synonymous with Universal Life Insurance. Whole Life offers guaranteed coverage for your whole life, and a savings account that grows at a conservative, guaranteed rate of return (often 3-5%). With Whole Life, you typically cannot change your premiums or your coverage amount throughout your life. In addition, average Whole Life insurance premiums could be 1.5-3x higher than other Permanent Life Insurance product types for the same coverage amount. There are other types of Permanent Life Insurance products designed to cover you for your entire lifetime* and that offer more flexibility and higher cash accumulation returns, although their future performance may not be guaranteed.

#### What is "Combination" Life Insurance?

Combination Life Insurance is a type of policy that combines elements of both Term Life Insurance and Permanent Life Insurance. With a combination policy, you get the coverage of a Term Life Insurance policy for a specified period of time, typically 10, 20, or 30 years. The policy also includes a savings component, similar to a Permanent Life Insurance policy, that can accumulate cash value over time.

#### How does the cost compare for different policy types?

The cost of life insurance is highly dependent on the individual being insured, the type of insurance they want, and the amount of coverage they are looking for. The easiest way to get a quote and see what you qualify for is to complete our five-minute questionnaire.

#### Why should I put my savings here versus other savings options?

There are several great vehicles for saving and growing your wealth. We recommend consulting with a qualified advisor to find the optimal financial plan for you. That said, we absolutely think that an IUL or VUL life insurance policy should be a part of a holistic financial plan for suitable individuals. These policies offer several advantages over other savings vehicles such as the chance to grow tax-deferred wealth that can be accessed tax-free without the age restrictions or contribution limits of other retirement plans, and without the use-case restrictions of other vehicles like HSAs or 529s , and tax-free death benefit

Why Amplify

#### Who is Amplify?

Amplify is a digital life insurance platform. Our mission is to provide consumers with trustworthy advice and ethical life insurance products they can use while living.

#### How does Amplify work?

As a digital-first insurance platform, we make the process of buying insurance simple, transparent, and personal. Most of our clients start by getting a personalized recommendation and quote on our website. From there you have the option to complete an online application or speak with one of our licensed advisors to get more information and complete your application with them.

Once we have your application, we will work to get it submitted to the carriers who provide the product that is best for you. If something comes up during the carrier’s review (also called “ underwriting”) we have dedicated case managers who will help resolve any issues. Once the carrier finishes their review, they will let us know what coverage you are approved for and a final premium amount. From there all it takes is a few quick signatures, your first premium payment, and your policy takes effect.

The best part is, if for any reason you need to talk with us after your policy is in effect we will still be here! That’s right, no ghosting you. We are committed to ensuring you have what you need before, during, and after your application process.

#### What makes Amplify better?

We don’t love to toot our own horn, but….we think we are doing something pretty cool. Here are a few reasons our customers love us:

We are simple: Life insurance, especially Universal Life Insurance, can get pretty complicated and it’s important to make sure you understand what you’re purchasing when it comes to these products. Our digital tools make it simple to understand the products available to our customers, decide which option is best for them, and get their policy in effect as soon as possible.
We are transparent: We aren’t here to sell you something you don’t need. We know the life insurance industry has a reputation for doing so, and we’re working to change that. That’s why everything from our FAQs, to our application process, to our recommendations are built to give you all of the same information we have in order to help you achieve your goals.
We are specialists: Universal Life Insurance is a powerful tool that offers a death benefit, tax-deferred cash accumulation, financial flexibility, and liquidity without the age, income, or use-case restrictions of many other tax-advantaged savings accounts. That’s why we specialize in helping clients make the right decision to meet their financial goals.

#### Why buy through Amplify versus through an agent?

Amplify is a digital life insurance agency that offers you a fast, transparent, and easy quoting and application process that you can complete online in a matter of minutes. You also get the option to work with a qualified agent at any time if you prefer to have someone help you through the process. Once you’ve submitted your application to the carrier, our team of case managers will ensure you are kept up to date on the underwriting process, and notify you when your application is approved. We pride ourselves on excellent customer service and making the process of buying life insurance as simple as possible.

#### Is Amplify right for me? Who is eligible?

Amplify offers several ways to get the coverage you’re looking for. As a digital-first insurance platform with a team of licensed advisors we are equally-suited for those looking to get insurance with as little human-interaction as possible as well as those who prefer to talk with someone every step of the way. There are no eligibility requirements for getting a quote from us. Depending on the information you provide in the quoting stage, we will let you know which product is right for you, and if for some reason we can’t help you we will let you know that as well.

#### Why does Amplify specialize in Universal Life Insurance and Combination Policies?

Amplify specializes in Universal Life Insurance and combination policies because we believe in the power and flexibility that these products offer for our clients. The benefits of universal and combo policies are particularly appealing to those looking to grow cash value they can use while they’re alive.

#### Does Amplify only offer term and universal life?

We have helped thousands of clients find many different types of policies including term, universal life, whole life, accidental, and others. For an overview of the primary types of insurance we sell check out the “Compare Products” section of our FAQ page.

#### How much coverage can I get with Amplify?

The coverage amount available to you will depend on the type of insurance you’re looking for, your health, and how much of a premium you’re able to afford.

#### What does a policy offered by Amplify cover?

At this time, Amplify is not an insurance carrier, which means we don’t directly offer any life insurance policies. The policy you get from your carrier will outline the details of what is covered. For a high-level view of what a policy usually covers, see the “What is covered by life insurance?” FAQ.

#### Does Amplify offer a money-back guarantee?

Your policy will come with a “free look” period during which you can cancel for a full refund. The length of this time period is usually 10-30 days, but will vary by state, so be sure you know how long you have to get a refund before you purchase anything.

Why Bundle

#### Why save funds with life insurance? Why bundle protection and growth?

Cash value is a powerful savings and investment tool offered within a Permanent Life Insurance policy that can help you achieve your financial goals. Cash value life insurance can be used to generate tax-efficient growth, save for retirement, generate income, and provide liquidity for future needs. Additionally, cash value policies are an important aspect of succession planning and offer protection against creditors and legal cases in most states. With its many benefits, cash value life insurance is an excellent choice for those seeking long-term financial security.

Learn more about building wealth with life insurance in our Guide to Life Insurance.

#### Why should I choose Universal Life over a normal investment account?

Saving through a life insurance policy allows you to grow your returns tax deferred and access your principal and growth tax-efficiently. That means you could save 25%+ on income taxes or 15-20% on capital gains taxes just by saving through a life insurance policy vs. a brokerage account. Additionally, you can get the lifelong protection value that's a tax-free wealth transfer to your beneficiaries.

#### How do I use cash value life insurance to tax-efficiently grow wealth?

When you pay your premium, a percentage of that money is used to cover the cost of your insurance and any fees associated with your policy. The rest of your premium is used to fund your cash value – similar to a savings account. Depending on the type of policy you have, the money in your cash value account is invested either by the insurance company or you. Gains generated in this account grow tax-deferred and can be accessed tax-free if policy guidelines are followed.

Tax-efficient cash accumulation is a unique advantage of Permanent Life Insurance policies not available in Term Life Insurance policies. This tax-efficient growth is what makes cash-value life insurance an attractive option for those who have already maxed out contributions to other tax-deferred accounts like 401(k)s and Roth IRAs.

#### How do I use cash value life insurance to protect my loved ones?

Here are a few ways we’ve seen cash value life insurance help our clients and their families:

Life long tax free death benefit : unlike term insurance, cash value policies are permanent and provide coverage for your entire lifetime*, as long as you don't surrender your policy or let it lapse.
Succession planning: Cash value life insurance can be used to offset estate taxes. If your estate is subject to estate taxes, the life insurance death benefit can be used to pay these taxes and provide an inheritance for your beneficiaries.
Asset protection: As a private contract between you and your insurer, your policy and its cash value are protected from creditors and legal action in most states.

#### How does my cash value grow?

Cash value in Permanent Life Insurance policies grows through a combination of premiums and investment returns. There are different ways cash value can grow depending on the policy type.

Whole Life policies have guaranteed fixed cash value accounts that grow according to the insurance company's terms (e.g. 3-5%). The policyholder has no control over how the cash value is invested.
Indexed Universal Life (IUL) policies accumulate cash value based on returns linked to the performance of a stock market index. Policyholders can choose which index they want their cash value account to track.
Variable Universal Life (VUL) policies invest funds in subaccounts that function similar to mutual funds, and the cash value grows or falls based on subaccount performance. VUL policyholders have full discretion over how their cash value is invested within the subaccount.

Each type of cash value product comes with varying risks and rewards. Learn more in our Guide to Life Insurance.

#### Is there a limit on how much money I can put into my policy?

There is a limit to how much you can contribute to a cash value insurance policy, known as the "maximum premium." The limit is determined by the insurance company and is based on factors such as your age, health, and the type of policy you have. However, if you choose a higher death benefit, you may be able to contribute a higher amount of premium.

It's important to be aware of the maximum premium limit because exceeding it could cause the policy to lose its tax advantages and trigger gift tax implications. The maximum premium is the highest amount of money you can pay into the policy within a specific time period, such as a year or the life of the policy.

#### What percent of the money I put into my policy goes toward the cash value?

This amount will vary based on the policy design and specific age and health of the policyholder. As a general rule, 60% or more of your gross premium can go towards your cash value in the initial years of owning the policy. This amount will change over time as a larger percentage begins to be allocated to your insurance as you age.

#### Is there a penalty if I take out cash value early?

Yes, there can be penalties for withdrawing funds too early from a Permanent Life Insurance policy. Specifically, if you withdraw funds before a certain point, you may be subject to surrender charges. These charges are designed to discourage early withdrawals and to help offset the costs associated with issuing and maintaining the policy.

After the surrender period, which varies by company, you will be able to access all of the cash accumulation value within your policy.

#### What can the money be used for?

There are very few (if any) restrictions on how you can use the cash in your cash value account. Common reasons people leverage these vehicles include:

Retirement savings and income: Cash value life insurance can serve as a retirement savings and income tool, mimicking the tax benefits of a Roth IRA with flexible contribution caps.
Future liquidity for investment: you can take advantage of a competitive loan rate while your total cash value continues to earn interest. This innovative banking strategy utilizes the cash value of your life insurance policy to provide funding for personal or business needs such as a down payment, while still allowing your savings to grow.

#### Can I change my cash accumulation strategy after getting the policy?

Yes, you can typically change your cash accumulation strategy in an Indexed Universal Life (IUL) or Variable Universal Life (VUL) policy after obtaining it. Both IUL and VUL policies offer flexibility, allowing policyholders to adjust their investment preferences.

For IUL policies, you can modify your cash accumulation strategy by changing the allocation of the cash value to different indexed accounts.

In VUL policies, you can adjust your cash accumulation strategy by reallocating funds among the available investment sub-accounts.

It's important to note that some policies may have specific guidelines or restrictions on the frequency of changes and may involve administrative fees. Regularly reviewing your policy with your insurance agent or financial advisor will help ensure your cash accumulation strategy remains appropriate for your evolving needs and market conditions.

#### How much should I be saving with life insurance?

To determine the amount to put into your Universal Life insurance policy's cash value account, consider your financial goals, how much money you have available for savings, what other savings options you have available, and risk tolerance. IUL and VUL policies offer premium flexibility. Higher premium payments can expedite cash value growth within guidelines, but affordability is key.

Seek guidance from an insurance agent or financial advisor to tailor premium payments to your needs. They'll assess your situation and guide you toward a suitable funding strategy.

#### How do I choose a Universal Life policy to fit my risk tolerance?

If you prefer steady growth with no potential for loss on your cash value, then an IUL policy is likely better for you. The cash value in an IUL policy follows the performance of a chosen stock market index (e.g S&P 500), but it does so with a floor on losses (typically 0%) and a ceiling on gains (typically 8-9%). This means you have the opportunity to achieve gains without the risk of losses in a downturn.

If you are less risk averse, then VULs can offer larger potential gains with the exposure to potential losses. This is because the cash value in a VUL is invested in sub accounts that function like mutual funds. The cash value in your policy fluctuates as these sub accounts do without the floor or ceiling of an IUL.

Check out Amplify’s Guide to Life Insurance for a helpful look at how different vehicles compare in terms of how they protect you and your loved ones, as well as how they can help build tax-efficient wealth. You can also speak with a qualified agent by calling us at 855-630-1027.

#### How can I adjust my coverage and payment over time?

Adjusting your Indexed Universal Life (IUL) or Variable Universal Life (VUL) coverage and premium payment over time is one of the key advantages of these policies. Here's how this works:

Coverage Adjustment: With IUL and VUL, you can typically adjust your coverage amount up or down within certain limits. If your financial situation changes, such as having more dependents or paying off debts, you may want to increase your coverage to ensure your loved ones' financial security. Increases in coverage typically require underwriting. Conversely, if you have fewer financial responsibilities, reducing your coverage could lower premium costs.
Premium Flexibility: These policies offer premium flexibility, allowing you to adjust the amount and frequency of premium payments. You can typically pay more than the required minimum premium to increase the cash value or pay less - even zero - if necessary due to financial constraints. However, be mindful of maintaining enough cash value to keep the policy in force.

Remember to review the policy's terms, any potential charges for changes, and the impact of adjustments on the cash value and death benefit. Working with your agent and a qualified financial advisor will ensure your IUL or VUL policy remains well-suited to your changing circumstances and long-term financial goals.

#### Why not just buy Term and invest the difference?

Term life insurance can be a useful tool in the short-term to ensure your loved ones will have financial support if you were to pass away. However, there are two main reasons why the “buy term, invest the rest” approach may not be the most advantageous approach to life insurance or your broader financial plan:

Term life insurance does not cover you for the long run: As the name implies, Term life insurance is temporary. If you outlive your Term policy, all of the money you’ve paid in premiums is gone, and you’ll end up paying much higher premiums on your next policy if you still need coverage when the first Term policy expires. Think of it like renting vs. buying a house: if you ever want to buy a house, it’s best to get in sooner than later because it’s only going to get more expensive.
You miss out on the tax-efficient wealth building opportunities of an IUL or VUL policy: Odds are whatever vehicle you choose for the “invest the rest” part of this approach will not provide the same tax-deferred growth or tax-free access opportunities that an IUL or VUL policy offers. These are powerful benefits that can significantly improve your financial flexibility.

It’s always best to consult with a qualified financial advisor when deciding on the best strategy for your financial goals. Many advisors default to the buy term, invest the rest approach because they believe they can generate better returns on your money than a permanent life insurance policy can. While that may be true, it’s important for you and your advisor to consider that they may still be able to manage the money in your cash value account depending on the type of policy you select.

Check out our Guide to Life Insurance to see more information on this topic.

Apply

#### What is the best way to get started?

The first step in getting life insurance is determining how much coverage you need. This will depend on factors such as your age, income, debts, and the number of dependents you have. As a reminder, most financial advisors suggest you have coverage equal to 10x your annual income.

Next, you’ll need to determine which type of life insurance is right for you. Amplify is here to help with our easy-to-use recommendation engine. Simply tell us a little bit about yourself and we will take it from there.

#### How can I get a product recommendation and a quote?

It’s pretty simple to get a product recommendation and quote through Amplify by filling out our no-obligation life insurance application. When getting a quote, you will be asked for some basic information about yourself and your medical history, as well as how much coverage you are looking for. Our dedicated Amplify agents can take it from there.

#### How easy is the application process? How do I apply?

To apply for life insurance with Amplify, you can start by filling out an application online. You will be asked to provide information about your health, lifestyle, and any pre-existing medical conditions. Once the application is complete, we will review it and reach out to you to discuss your needs and expectations further and to determine your premium. This process can take anywhere from a few days to a couple of weeks depending on the company and information provided.

#### What happens after I apply?

After you apply for life insurance, we will review your application and reach out if we have any questions. We also conduct a risk analysis, which may include reviewing your medical records, interviewing you, and potentially requiring a medical examination. The carrier will then use this information to determine your premium and issue a policy. Once the policy is issued, you will need to make regular payments (premiums) to keep the policy in force.

#### How long does it take to buy a policy?

The length of time it takes to buy a life insurance policy can vary depending on several factors, such as the type of policy you are applying for, the amount of coverage you are seeking, your personal health, and your financial situation.

Generally, the process for Term Life Insurance can be relatively quick, and you may be able to receive a policy within a few days of applying. If you are applying for a Permanent Life Insurance policy such as Universal Life, the process may take longer as the carrier may need to conduct a more in-depth underwriting process to assess your risk.

#### Can I talk to an actual person if I have questions?

Yes. We have a team of licensed advisors, case managers, and delivery agents who are available to help answer any questions you may have before, during, or after the application process.

#### Why does the application require the information it asked?

The questions we ask in our application are standard questions that all insurance carriers need to know. The main reason for most questions is to understand whether you are suitable for the policy type and coverage level you applied for, and to assess the level of risk you pose to the carrier in terms of your health and lifestyle.

#### Why do you need my Social Security and Driver's License Number?

At Amplify, we work with the U.S.’s top insurance carriers, and this information is standard on all of their applications. Both items help verify your identity and ensure we have the right person on the application. It won’t be used in a manner that impacts your credit score, and we keep this information encrypted.

#### Why do you need my bank account information?

Adding your bank account helps get you the cheapest rate on your premium. Additionally, setting up automatic payments for your monthly premiums also helps ensure your policy doesn’t lapse due to a missed payment. Similar to your SSN and driver’s license number we keep this information encrypted so it’s secure.

#### How does Amplify protect my Information?

We encrypt all personal information you provide us to ensure it is secure. Additionally we restrict access to your information within our systems so only the people who need to see that information are able to.

#### When does my life insurance coverage start?

Typically your coverage starts when you pay your first premium. This is after you’ve been approved by the insurance carrier for the policy you applied for. With Amplify, you have the option to start your coverage sooner with Conditional Coverage. This allows you to access up to $1 million in coverage before the carrier has approved your application.

#### What payment options does Amplify accept?

Premium payments need to be made directly from your bank account.

#### Do I have to be a U.S. citizen to apply?

Yes. We do not sell life insurance to individuals who are not U.S. citizens at this time.

#### Does Amplify require a commitment to apply?

No. Our application process is not binding. You will be able to see what the carrier approves you at (and how much your premiums will cost) before you have to pay for anything. You will also get a free look period from your carrier, which will vary by state. This is the time period you have to cancel and get a refund if you’ve already paid your first premium.

Manage Policy

#### How can I access my policy information?

There are several ways to access your life insurance policy information:

Check your policy documents: Your life insurance policy documents will contain all the information related to your policy, including policy number, coverage details, premiums, and beneficiaries. You can refer to these documents to find out more about your policy.
Contact your dedicated Amplify Agent: You can contact us to obtain information about your life insurance policy. We will be able to provide you with details about your coverage, premiums, and any other questions you may have.
Check your online account: We offer online access to policyholders, where you can view your policy information, make premium payments, and update your personal information.

Overall, it is essential to keep your life insurance policy documents in a safe place and regularly review your policy information to ensure that it meets your needs.

#### Where do I go for policy changes?

You can go to either Amplify or the life insurance company that your policy is under. We will be able to help you answer any questions you have or if you wish to reach out directly to the life insurance company they will be able to assist you as well.

#### How do I update my personal information?

You will have an online customer portal with each company that you have a policy with. There, you will be able to access your policy information, documents, and make changes to your account.

#### How do I make a payment or update my billing information?

The easiest way to make a payment is to set up automatic monthly payments. This helps ensure you don’t miss a payment, which can cause your policy to lapse. If you choose to submit payments manually, or if you need to update your billing information, you can typically do so via an online customer portal with the company that holds your policy.

#### Who can make my payments?

Insurance policy payments are typically made by the policy holder, but can be made by others, such as a relative or a business.

#### How can I adjust my payment frequency (monthly, quarterly, annually)?

Once your policy takes effect, you will need to manage your payment frequency directly with the company that holds your policy.

#### Can I stop paying on the policy at a certain age?

The policy can be designed for you to stop paying premiums after a certain number of years or by a specific attained age. You should discuss these goals as well as any specific death benefit or cash value targets with an Amplify advisor. Even if your policy was not initially structured to stop paying premiums or skip contributions, this may still be a possibility. If there is enough cash value built up to cover your policy charges, your policy will remain active. Your cash value build up will depend on prior contributions and crediting performance to-date. Note: Although this may be possible, there may be implications on the level of contributions required in future years in order to maintain your policy.

#### How do I cancel my policy?

The easiest way to cancel your policy is to reach out to your policy’s carrier and speak to a representative. Before you cancel, however, it’s important to double check your policy documents to ensure you fully understand what will happen to your policy and any cash value you’ve accumulated. Many policies have a surrender period and a surrender charge for cancellations that happen within a certain time frame (usually the first 10-15 years of a policy). Your carrier’s representative should be able to help you determine the best path forward.

#### What happens if I cancel my policy? Do I lose all my money?

If you cancel your policy, the amount that you would get back would be your accessible cash value inside of your savings account at the time of cancellation. As you may recall, you are only able to access a certain percentage of your cash account that increases in percentage until year 10 or year 15 (depending on the life insurance company) called the surrender period. After the surrender period, you may be able to cash out your entire cash value if you cancel your policy, as long as you have saved within the MEC guidelines for your policy.

#### Does Amplify charge a fee if I cancel my policy?

Your carrier (not Amplify) may charge a cancellation fee depending on the type of policy you have:

Term: There is no fee for canceling your term policy.
Permanent: You may face surrender charges if you cancel your permanent life insurance policy. This means you will not receive your full account value back. Surrender charges will never exceed your account value. There may also be tax implications for canceling your permanent life policy, if you have a gain in the policy or an outstanding loan. Be sure to review your policy documents before canceling a permanent life policy to ensure you understand the implications.

#### What happens if I can't pay my insurance premium?

If you cannot pay your premiums, most carriers have a 61 day grace period, after which your policy will be paused for a specified time period during which time you are not covered. After that time elapses your policy will be canceled without the ability to reinstate. To avoid this, you have a few options:

Lower your death benefit: The lowest amount of death benefit coverage you can will vary by carrier.
Leverage Cash Value: If you have had the policy for some time (e.g. 5 years+), your policy’s cash value may be sufficient to cover your premium payments for a time. Your cost of insurance will be deducted from your cash value to keep your policy active.

#### What happens when I die?

If your policy is active when you pass away your family will need to file a claim with the carrier to receive your death benefit. Once that claim is approved, your death benefit will be paid out to your beneficiaries tax-free.

#### Who can be my beneficiary?

Your beneficiary can be a person, multiple people, your estate, a trust, a charitable organization, or a legal entity like a company. You may be able to designate primary and contingent beneficiaries and you can usually update your beneficiary selections later. Rules on beneficiaries may vary by state and carrier, so be sure to check the fine print for your state before making your selections.

#### What will my beneficiary receive when I die?

When you pass, your beneficiary (or beneficiaries) will receive the full death benefit of your policy plus any unused cash value in your account (if you have a Permanent Life Insurance policy). Individual beneficiary payouts will be determined by the amount you specified when you designated them as beneficiaries (usually a % of the total payout).

#### Will my beneficiaries receive all of my cash value and death benefit?

If you have a permanent life insurance policy with cash value, your beneficiaries will receive a death benefit consisting of the policy’s accumulated cash value minus any outstanding policy loans and associated interest, plus the policy’s face value amount. This is all paid out tax-free.

#### How do I manage or change my beneficiaries?

You will manage your beneficiaries on your carrier’s website or by speaking with them on the phone.

#### How long will it take for a claim to be paid?

Your life insurance death benefit will pay out within a certain number of days, often 30 days or less, after the life insurance company receives the claim and paperwork.

#### What does my family need to do to claim my policy after I die?

Your family will need to notify the policy carrier and make a claim. They will need a copy of your death certificate, after which the life insurance company will be required to pay out within a certain number of days (e.g. 30 days) after receiving the paperwork otherwise they will have to pay interest on your death benefit.

#### How can my loved ones use my coverage after I pass?

There are no restrictions on how your loved ones use the death benefit from your policy.

#### What happens if I pass away in another country?

Most life insurance companies will cover death in a foreign country, especially if you’ve had the policy for more than two years. There are some countries that are deemed more high-risk than others, and if traveling to a particularly high-risk region, it is best to let your insurance company know beforehand. It’s important to note that foreign death claims are often harder to prove, since death claims may not be recorded as they are here in the U.S.

If you travel frequently, you should let your Amplify Advisor know so that they may shop around within the life insurance companies that specifically cover overseas deaths.

#### What happens to my policy if a life insurance company goes out of business?

Life insurance company insolvencies are incredibly rare and there are many layers of protection to keep you and your policy secured. In the rare event that an insurance company goes out of business entirely, the state will step in to settle debts. Policyholders have priority over other debtors. State Guaranty associations provide further protection by guaranteeing death benefit and cash values up to a certain limit.

Grow Wealth

#### How does tax-efficient cash accumulation work in a life insurance vehicle?

When you pay your premium, a percentage of that money is used to cover the cost of your insurance and any fees associated with your policy. The rest of your premium is put into a savings account. Depending on the type of policy you have, the money in your savings account is invested either by the insurance company or you. Gains generated in the savings account grow tax-deferred and can be accessed tax-free if policy guidelines are followed.

#### What is "Account Value"?

The account value is the amount of money in the savings account tied to your insurance policy. It’s worth noting that account value and cash value can differ if your policy is still subject to surrender charges or if there is any outstanding loan debt.

#### What is "Cash Value"?

Cash value is equal to the account value minus any surrender charges or outstanding loan debt. If your surrender charge is $0 and you have no outstanding loan debt then the account value and cash value are the same.

#### How can I keep track of my account value? Is there an app?

Once the policy is issued, you will receive an annual statement which will indicate what your current cash value is at that time. You will also be able to contact the insurance company and request an inforce illustration, and that will show your projected cash value based on how your policy has actually performed by that point in time.

#### How does my cash value grow?

#### How much can I save? Is there a limit?

#### How can I contribute more to my policy?

You will need to speak with your carrier to change your monthly premium. Before you do, however, consult with your carrier on whether increasing your monthly contribution will have any negative impacts on your policy or financial goals.

#### What percent of the money I put into my policy goes towards cash value?

For a Term Life policy, 0% of the money goes toward cash value because Term policies don’t offer a cash value component.

For Permanent Life Insurance policies, that will depend on the following:

The policy type
The health and lifestyle of the individual who owns the policy
How much money the policy owner puts into their policy on a monthly or yearly basis.

With all permanent life insurance policies, you have the option to change your death benefit, the structure of your policy, and the monthly premium to suit your financial goals. This means it’s possible to change the percent of money going toward cash value if needed.

Check out Building Wealth with Life Insurance in our Education Center to learn more.

#### How do I control where and how my funds are invested?

With an IUL policy you will need to work with your carrier to update how your funds are invested. With a VUL policy, you are in charge of allocating funds in your policy’s subaccounts. Your carrier should provide you with a way to manage your funds when your policy goes in force (becomes active).

#### What if my risk tolerance changes over time?

With an IUL policy, you are typically guaranteed a 0% floor on your annual interest. This means if the market takes a downturn, you will not lose any money in your policy. With a VUL policy, you have control over how your cash value is invested. The sub-accounts available to you with a VUL will likely have different options that work with different risk levels, but be sure you review those options before you activate your policy to ensure you have that flexibility when the time comes.

#### How often should I revisit my coverage or savings needs?

As often as you like. There may be some limitations to what changes you can make to your policy depending on the policy type, how long your policy has been in force, and the amount of cash value you’ve accumulated. That said, one of the main benefits of an IUL or VUL policy is the flexibility they offer. Amplify recommends consulting with a qualified financial advisor to determine if and/or when you may need to change your death benefit or contribution amounts.

#### Will my premium payments ever change over time?

Premiums for IUL and VUL policies are flexible. This means they can change over time, or you can keep them consistent. Here are a few things to keep in mind when considering whether to change your premium:

Eventually the amount of money going toward your cash value will decrease. This is because the cost to insure you will go up, and the carrier will increase the amount they are charging for your policy’s face value.
If you want to lower your premium amount, you will likely need to lower the face value of your policy. This reduces the risk posed to the carrier, and is something many people do when they get near retirement age because they have built up enough cash value to offset the decrease in face value.
If you want to increase your premium to build more cash value, be sure to review the tax regulations associated with your policy to ensure you are not contributing too much.

#### Can I Stop Paying On the Policy At A Certain Age? Can I Skip Contributions?

Yes it is possible to stop paying your premiums at a certain age. The main thing to be aware of is whether you have built enough cash value that your returns are sufficient to keep the policy in force. If not, you will need to keep paying enough to cover your premium so the policy does not lapse.

Access Funds

#### How do I access my policy and funds?

For each policy you hold, an online customer portal will be provided, enabling you to access policy information, documents, and manage your account, including premium payment, banking information, cash withdrawals, and investment allocation of your savings account.

You can track the progress of your application and access application documents through the portal prior to policy approval and delivery.

#### How does accessing funds and policy payouts work?

Accessing funds and policy payouts from a Permanent Life Insurance policy can work in several ways, depending on the type of policy and the specific terms and conditions of the policy. Here are some common ways that policyholders can access funds and payouts:

Taking a Policy Loan: You have the option to borrow against the cash value of your policy, but keep in mind that there will be interest on the loan. While your cash value will not decrease and will still earn interest, the outstanding loan amount will reduce the death benefit payable to your beneficiaries.
Partial withdrawal: You may be able to make a partial withdrawal of the cash value, leaving some of the funds in the policy to continue earning interest.
Surrendering the policy: You can surrender the policy and receive the cash value as a lump sum payment, minus any surrender charges and outstanding loans.
Death benefit: If you pass away while the policy is in force, your beneficiaries will receive a lump-sum payment (the death benefit) tax-free.

It is important to note that accessing the cash value of your policy can have implications for the death benefit and may also affect the policy's tax status.

#### Is there an ideal strategy for accessing cash value that limits my tax burden?

The two primary ways to access your policy’s cash value without incurring a tax penalty are withdrawals and policy loans. Here is a brief overview of each:

Withdrawals: Withdrawals from your cash value can typically be made tax-free as long as your withdrawals do not exceed the cumulative premium you’ve paid into the cash value account (your basis). However, withdrawals immediately lower your total death benefit which may cause your policy to violate regulations intended to prevent permanent life insurance policies from becoming pure investment vehicles. If you’re unsure how much you can withdraw, speak with your carrier as they will be able to tell you.
Policy Loans: These loans are not taxable and they do not impact your policy’s death benefit, so they are less likely to cause your policy to lapse or violate regulations than a withdrawal.

You should consult a qualified tax advisor before making decisions about accessing your cash value.

#### How does a policy loan work?

If you have limited options for borrowing money at low interest rates, policy loans from your Permanent Life Insurance policy may be a suitable choice. Typically, you can borrow up to a specific percentage of your cash value at lower interest rates than traditional bank loans. Since you're borrowing your own money, you're not obligated to pay back the loan. Furthermore, your cash value will remain intact and will continue to accumulate interest. However, it's important to consider that any funds borrowed, plus interest, will reduce the death benefit payable to your beneficiaries upon your passing.

Check out our Guide to Life Insurance for more details.

#### How does a withdrawal work?

Withdrawals from a Permanent Life Insurance policy may not be subject to income taxes if the amount doesn't exceed the total amount paid into the policy. You might withdraw cash value to pay off your mortgage, finance a child's college tuition or pay for nursing home care as you age. However, this could reduce the death benefit, depending on the policy's terms and the value of the cash account.

#### How much can I take out from my life insurance policy?

Typically, you can withdraw or borrow from the cash value of your Permanent Life Insurance policy up to the accumulated premium amount. If you withdraw more than the total amount of premium you've paid into the policy you may face tax penalties. It's also worth noting that some policies may have surrender charges in the early years.

#### How much of my cash value can I access right away?

Depending on the policy, you may be able to access most of your cash value right away or only a small portion. Access to cash value may be limited by:

Timing restrictions - some policies do not allow withdrawals or loans of cash value in the first 12-24 months.
Surrender charges - many policies have a surrender charge on withdrawals in early policy years.
Maximum distributions - carriers typically require sufficient cash value remain in the policy to cover several months of charges.

#### When can I start taking out cash from my policy?

Typically, you should be able to have limited access to the savings account after year 2 or 3, but will not be able to access all of the cash inside your account without facing a surrender charge until after year 10-15 (depending on the life insurance company).

#### Why are there surrender penalties for accessing my cash accumulation early if it is my money?

There are expenses associated with setting up your policy and the underlying cash value account. The carrier needs to ensure that they can cover their expenses for the set up process, which is why they will charge you a surrender fee if you cancel your policy or withdraw funds too early.

#### When should I consider accessing my funds?

Before accessing funds from your IUL or VUL policy, consult with a financial advisor to explore the implications, potential tax consequences, and assess alternative options to meet your financial needs effectively.

If you decide that accessing funds in your policy works with your financial plan, here are some common reasons people leverage their cash value:

Emergency Expenses: If you face unexpected financial emergencies, such as medical bills or home repairs, accessing the cash value can provide a source of funds without taking on additional debt.
Supplementing Retirement Income: During retirement, you might consider using the cash value to supplement your income.
College Funding: The cash value can be used to cover education expenses for yourself, a spouse, or children.
Debt Management: Accessing funds to pay off high-interest debts may help improve your financial situation.
Long-Term Care Needs: If you require long-term care, the cash value could help cover expenses. Policyholders that require long term care (or may require this in the future should also consider a Long-Term Care Rider).
Estate Planning: The cash value can be used strategically as part of your estate planning strategy, providing a legacy or covering estate taxes.

It’s important to be mindful of any tax implications and ensure the policy remains in force to sustain the death benefit and avoid lapsing.

#### Can I access the cash value after one lump payment?

Yes, limitations on distributions are the same whether you pay in a single lump sum or monthly.

#### If I take out cash from my policy, will my life insurance coverage go down?

Yes, depending on the amount of the withdrawal and the policy's specific terms, your life insurance coverage may go down if you take a withdrawal from your IUL or VUL policy. Both IUL and VUL policies have a coverage amount and a cash value component that together make up the total death benefit. When you take a withdrawal, you are essentially accessing a portion of the cash value that has accumulated within the policy thereby reducing the total death benefit by the amount withdrawn. The remaining cash value will continue to earn interest or investment returns, but the death benefit will be adjusted to reflect the withdrawal.

It's important to note that certain withdrawals may have tax implications, especially if they exceed the premiums paid into the policy. Additionally, large withdrawals can deplete the cash value and potentially cause the policy to lapse if there is insufficient cash value to cover policy charges and expenses.

#### Do I have to pay taxes on a policy loan or withdrawal?

Amplify is not a tax advisor or attorney, so we strongly recommend you consult with a qualified tax or legal advisor to understand your personal situation before leveraging your policy in this manner.

That said, the tax treatment of withdrawals from an IUL or VUL policy depends on several factors. In general, withdrawals up to the total amount of premiums paid into the policy are considered a return of the policyholder's basis and are typically not subject to income taxes. However, any withdrawals that exceed the total premiums paid are considered earnings and may be subject to income tax.

To minimize potential tax implications, policyholders can often utilize policy loans against the cash value instead of direct withdrawals. Policy loans are generally not considered taxable income as long as the policy remains in force. However, unpaid policy loans can reduce the policy's death benefit and cash value.

#### How do loans and withdrawals affect my death benefit?

Policy loans and withdrawals can have varying impacts on your death benefits. Policy loans from life insurance policies are different from other loans in that they don't require repayment. However, if you don't pay back the loan during your lifetime, the amount is deducted from the death benefit upon your passing, which reduces the payout your beneficiaries receive and essentially repays the loan. On the other hand, withdrawals from the cash value of a policy will immediately reduce both the death benefit and cash value.

#### How can I ensure I don't lapse my policy by taking money out?

Your policy will lapse if there is not sufficient cash value to cover the policy charges. When considering a large distribution from your policy, you may wish to ask for an in-force illustration, which is a hypothetical projection of how your policy may perform in the future, and can demonstrate how your planned distribution will impact your policy.

Leverage Protection

#### What additional protections can be added-on to my policy with Amplify?

To enhance the coverage of a Permanent Life Insurance policy, different riders such as long-term care, chronic illness, or child term can be added. The availability of these riders may vary depending on the specific policy.

#### How can I use my policy if I get seriously sick and what illnesses qualify me to take money out of my life insurance policy?

You can access the accumulated cash value of your Permanent Life Insurance policy immediately. Additionally, depending on the specific riders purchased with your policy, there may be additional coverage available for terminal illness, chronic illness, or long-term care needs. See (When can I access my life insurance coverage if I have a serious illness?)

#### When can I access my life insurance coverage if I have a serious illness?

The type and amount of funds you can access from your life insurance policy depends on the specific policy type or rider you have. Some policies are "indemnity" plans, which pay out in the form of a check after verification by a US healthcare professional, while others are "reimbursement" plans, which pay out after receiving receipts or proof of specific care outlined in the policy details.

#### What is a “rider”?

A “ rider” can be added to your policy to provide additional protections and becomes a part of a life insurance policy. You can add multiple riders to your policy to access different kinds of benefits. Universal Life Insurance typically offers more types of riders than Term Life Insurance policies. A few common examples of riders you can add that provide additional protections are:

There are many types of riders offered as part of policies offered by Amplify. Typically Chronic illness, Terminal illness, and No Lapse Guarantee are included by default within policies we offer. You can check your policy details or speak with our licensed advisors to review your riders and benefits.

Read this blog post to learn more.

#### What is a critical illness rider?

An optional add-on to a life insurance policy that typically provides an acceleration of part or the entire death benefit upon the diagnosis of a specified critical illness, such as cancer, heart attack, or stroke. There are no restrictions on how this money can be spent, but this benefit is often used to cover medical expenses, lost income, or other expenses associated with the illness. The specific terms and conditions of a critical illness rider, including the illnesses covered and the benefit amount, will vary depending on the policy and the insurer.

#### What is a terminal illness rider?

A terminal illness rider allows you to receive a portion of your death benefit while you are still alive in the event you are diagnosed with a terminal illness (usually less than 12-24 months to live). The money you receive can be used for any reason, such as paying medical bills or taking a special trip with your family.

#### What is a chronic illness rider?

A type of insurance policy rider that provides additional coverage for individuals with chronic illnesses. This type of rider is often added to a life insurance policy and can provide benefits for care and treatment related to the insured’s chronic condition. The benefits provided by a chronic illness rider can include in-home care, assisted living, and nursing home care, as well as other types of care and treatment. The specific benefits and requirements for a chronic illness rider will vary depending on the insurance company and the policy.

#### What is a long term care rider?

A type of insurance rider that can be added to a life insurance policy or an annuity contract. It allows policyholders to access a portion of the death benefit while they are still alive, if they require long-term care due to a chronic illness or disability. The funds can be used to pay for expenses related to long-term care, such as in-home care, assisted living, or nursing home care.

#### Do I have to pay taxes when taking out money for long term care, chronic illness, or terminal illness?

In general, accelerated benefits for chronic illness, terminal illness, and long-term care riders are not subject to federal income tax (see IRC 101(g) and IRC 7702B). Be sure to consult a tax advisor about the particulars of your situation.

#### If I take out money early for long term care or critical illness, will my life insurance coverage decrease?

Yes, long term care and critical illness riders allow you to access a portion of your death benefit before in certain situations. The benefit you receive will reduce your future death benefit.

#### How much can I access if I had a serious illness?

The amount of funds you can access from your Permanent Life Insurance policy depends on the specific rider you have added. The available amount can vary widely, ranging from as little as 2% of your death benefit up to the full amount of your death benefit in one lump sum payment.

Expand Protection

#### I already have a life insurance policy, should I consider replacing it with Amplify ?

Consider transferring your old life insurance policy to a new one if you find a policy that better suits your financial strategy, offers cheaper premiums, or has features such as healthcare riders that better fit your needs.

However, be aware of the following factors before making the decision:

Transferring your policy may result in sacrificing the cash value locked in the " surrender period," unless you transfer to a different policy type from the same insurance company
Premiums may increase as you purchase the policy at a later age
You will start a new surrender period, locking in your cash value for another 10-15 years before accessing 100% of its value.

Before making the transfer, carefully review the fine print of your new policy to ensure it meets your needs and expectations.

#### Can I replace an existing life insurance policy with an Amplify Policy?

Yes you should be able to replace or supplement any existing life insurance policies with a policy from Amplify. If you have an existing policy with cash value, you may qualify to transfer the account value tax-free. Consult with one of our advisors on the best options for your needs.

#### How do I transfer my old life insurance policy to a new one with Amplify?

You can transfer an old life insurance policy to a new one, provided there is cash value available that is not subject to a surrender period penalty. This is known as a 1035 exchange, and it allows for tax-free rollover of cash value from one Permanent Life Insurance policy to another. If there is no cash value, you will need to be underwritten for the new policy based on current age and health. Your Amplify Advisor can help determine the best course of action. A transfer may be worthwhile if it significantly reduces monthly premiums, increases coverage amount with the same monthly premium, or generates greater investment value. Alternatively, you may consider purchasing a new policy to obtain desired features while retaining the old policy.

#### What if I have a life insurance policy from another country?

If you have a life insurance policy from another country, you need to verify if and how they pay out if you pass away outside of the country where the life insurance company is based. Additionally, if you have any healthcare riders, it is essential to check if they cover healthcare issues that occur outside of that country and what evidence they require to activate the coverage.

If you own life insurance from another country, you can ask your Amplify Advisor to help you review the policy and compare it with the leading carriers in the U.S. to find either a more cost-efficient premium for the same amount of coverage or coverage that is more suitable for residing in the U.S.

#### Can I have multiple life insurance policies? Why would I do this?

It's common for individuals to have multiple life insurance policies for different reasons. Additional coverage may be needed due to life changes, such as taking on an extra mortgage or having a new child. Each policy may serve a different purpose, such as one for tax-free wealth transfer and another for accumulating cash value. If you require coverage for a specific rider, such as long term care or critical illness, you may need to purchase an additional policy or a stand-alone policy. While some individuals may choose to purchase from multiple companies to mitigate risk, life insurance companies rarely go bankrupt and have multiple layers of protection. It's important to check the rating of the life insurance company before accepting the policy. Amplify only works with A-rated companies in the U.S.

#### Can I buy insurance for my spouse, parents, or children?

In most cases, yes. To buy life insurance for someone you need to have that person’s consent and be able to show what carriers call an “insurable interest”. Insurable interest means you would be financially harmed if the person were to pass away.

#### Why would I buy an insurance policy for my children?

Many people purchase a permanent life insurance policy for their children because of the cash value component. Cash value policies can act as a savings vehicle for your kids that they can access when they reach adulthood. There are other options for building savings in your child’s name, though, so be sure you consult with a qualified advisor before purchasing a policy in your child’s name. You may also consider purchasing a policy for your child to protect their insurability. unexpected health events could cause your child to not qualify for coverage in the future or only qualify at high rates, but purchasing a policy on your child allows you to lock-in coverage for a relatively low cost.

#### Can I buy life insurance for someone else?

Yes, it is possible to be the owner of a life insurance policy that insures another person. In a life insurance contract, there are typically three parties: the owner, the insured, and the payor. However, to purchase life insurance on another person, you will need to meet three requirements:

Insurable interest: There must be a reasonable financial risk for the owner if the insured person passes away
Medical exam: The insured person will need to undergo a medical exam
Consent forms: The insured person must sign the application and policy approval form to acknowledge their consent

You can purchase life insurance policies on various people such as business partners, children (without their consent if they are under 18 years old), spouse, and parents.

#### Can my spouse and I get one policy?

Yes, there are two types of life insurance policies that allow spouses to purchase a joint policy.

First-to-die: These policies pay out the full coverage amount to the surviving spouse after the first spouse passes away. These policies are typically more expensive than traditional life insurance policies because the insurance company is insuring two lives instead of one.
Second-to-die: These policies pay out the full coverage amount only after both spouses pass away and are given to their beneficiaries.

While joint policies can be an option, it is often recommended that each spouse obtains their own life insurance policy to protect each other in case of a life emergency and to maximize the coverage amount overall for what they are paying in premiums.

#### What are common ways small business owners and partnerships use life insurance?

Businesses can uniquely benefit from life insurance policies. You may consider offering permanent life insurance as a benefit for your top executives. You could use life insurance to provide financial protection against the death of a key employee. You can use life insurance as part of a business continuity plan to provide liquidity to buy out a partner's interest, and provide their family with cash in the event of a premature death. Larger companies may use life insurance as part of a non-qualified deferred compensation plan.

#### How can I protect my family and ensure they benefit from my business assets?

You may have significant wealth in your business, but that wealth may be in assets that are not easily liquidated or may come with voting interests that are best kept within the company. A Buy-Sell agreement funded with life insurance can provide a way for your business to buy out your interest upon your death, leaving your family with cash when they need it.

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