Insurance
Live Life Fully Covered
Everyone feels concerned for their family’s future in the event of death, disability or the need for long-term care.
Nobody can prevent the unexpected from happening, but we can protect ourselves and our families from the financial consequences. If a child, spouse, life partner, or parent depends on you and your income, you need life and health insurance.
The four types of insurance that most advisors recommend.


- Your Life insurance will help provide financially for your surviving dependents should you pass away unexpectedly.
- Your Health insurance protects you from the financial impacts of a serious illness or accident.
- Your Long-term Disability insurance protects you from an unexpected loss of income and the cost of care.
- Your Auto insurance protects you from the financial burden of an expensive accident.
Employer coverage of life, health and disability insurance is often your best option, but if that is unavailable, we obtain quotes from several providers and explore and negotiate provider discounts if you purchase more than one type of coverage.
WestStar Advisors will help you select the right type and amount of insurance, taking your spouse, children, age, lifestyle, and employment benefits into consideration.
The steps we take will typically include:
We assess your life insurance goals.
We opt for a reputable insurance provider.
We select the correct policy type, such as term or universal life.
We calculate the optimal amount of insurance coverage for you.
We find the policy offering the best deal to determine your premium payments.


Our comprehensive analysis generates appropriate risk-management solutions for you, and is regularly revisited through life’s changing circumstances.
If you are looking for insurance to meet your unique goals and circumstances, and those of your family, we will always look for the best insurance policy at a price that you can afford.
Insurance and Risk Management Frequently Asked Questions
Insurance planning is the careful selection process of insurance policies to financially protect yourself, members of your family, assets, etc., against unexpected losses. It includes finding and assessing one or more insurance providers to financially support you in case of a crisis.
Insurance is there to alleviate the risk that possible events represent to you, your family or assets. In the world of insurance, the word risk simply refers to the possibility of a loss. Insurance companies consider a variety of risk-based factors in order to determine the amount of risk involved in issuing a policy.
These risk factors are then used to determine insurance rates, and they directly affect your premiums. By comparing a number of insurance companies, you can find the best insurance policies at competitive costs.
An insurance premium is the amount of money you or your business must pay for insurance protection. Insurance premiums are paid for policies that cover healthcare, auto, home, life insurance, liability, and other types of protection. They may be paid on a monthly, quarterly, or yearly basis.
Several factors influence your insurance premium, and these depend on the type of insurance you’re purchasing.
Here’s a breakdown:
General Factors Affecting Insurance Premiums
Age – Younger and older individuals often pay higher premiums due to higher risks they carry (e.g., young drivers, elderly health risks).
Gender – Some policies, such as life and auto insurance, may reflect gender-based pricing differences (see above).
Location – Living in high-crime or disaster-prone areas may (naturally) increase premiums (e.g., for auto, home, and health insurance).
Coverage Amount & Type – More comprehensive coverage along with lower deductibles will result in higher premiums.
Claims History – A history of frequent personal claims can increase your premium when you are looking for insurance.
Life Insurance
Factors that will influence your insurance premium include:
Your Health Condition – Any pre-existing conditions, your BMI, and your medical history will affect pricing.
Your Smoking & Lifestyle Habits – Smokers and individuals with high-risk hobbies (e.g., skydiving) will pay more.
Policy Term Length – Longer-term policies tend to have higher premiums.
Health Insurance
Factors that will influence your Health insurance premium include:
Your Age & Medical History – Older people or those with chronic illnesses will pay higher premiums.
Your Family Medical History – A genetic predisposition to diseases can increase rates.
Your Occupation – High-risk jobs (e.g., construction, firefighting) may raise your health insurance costs.
Your Plan Type – HMO vs. PPO, deductibles, and copays will all impact premium costs.
Auto Insurance
Factors that will influence your auto insurance premium include:
Your Driving Record – Accidents, tickets, and DUIs will all raise premiums.
Your Car Type & Age – Expensive or high-performance cars cost more to insure due to their value.
Your Car Usage & Mileage – Higher annual mileage will lead to higher premiums.
Your Credit Score – In some regions, insurers use credit history to assess your risk.
Homeowners & Renters Insurance
Factors that will influence your insurance premium include:
Property Location – Areas prone to theft, natural disasters, or flooding will attract increased premiums.
Home Value & Condition – Older homes or those built with expensive materials will cost more to insure.
Security Features – Having alarms, security cameras, and fire-resistant materials can lower premiums due to lower risk of theft.
The primary differences between Term Life Insurance and Whole Life Insurance lies in coverage duration, cost, and benefits. Here’s a breakdown:
- Term Life Insurance
Term Life Insurance is bought to give you coverage for a particular period of time, and is generally cheaper because it is of a shorter duration than whole life insurance and accumulates no savings or investment value.
Coverage Duration: Provides you with coverage for a fixed period (e.g., 10, 20, or 30 years).
Cost: Typically it is cheaper than whole life insurance.
Payout: Pays a death benefit if the insured dies during the term.
No Cash Value: Term Insurance does not accumulate any savings or investment value.
Best For: People who need affordable coverage for a specific time (e.g., until kids are grown or mortgage is paid off).
- Whole Life Insurance
Whole Life Insurance is bought to give you lifelong cover and is generally more expensive because it covers you for life and accumulates savings or investment value.
Coverage Duration: Provides you lifelong coverage as long as your premiums are paid.
Cost: More expensive than term life but offers additional benefits.
Payout: Pays a guaranteed death benefit no matter when the insured dies.
Cash Value: Accumulates a savings component that grows over time and can be borrowed against. However, the investment returns are usually lower than other financial instruments.
Best For: Those who want lifelong coverage, estate planning, or an investment component.
Which One Should You Choose?
Choose Term Life if you want affordable, temporary coverage (e.g., protecting your family while paying off major debts).
Choose Whole Life if you want lifelong coverage with a savings component and can afford higher premiums.
Missing an insurance premium payment can have different consequences depending on the type of insurance and for how long the payment is overdue. Here’s what generally happens when you miss a premium payment:
- Grace Period (Typically 15–30 Days). Most insurance companies offer a grace period, allowing you to make a late payment without losing coverage. Providing that you pay within this period, your policy stays active, and you may avoid any penalties.
- Late Fees & Policy Lapse. However, if you miss the grace period, you might be charged late fees or interest on the overdue amount. Your policy may lapse, which means your coverage will end and you won’t be protected.
- Impact of a Policy Lapse on Different Types of Insurance.
Life Insurance – You may have to go through medical underwriting again to reinstate your policy. Whole life policies may allow you to use the cash value to cover missed payments.
Health Insurance – For ACA plans, there’s usually a 90-day grace period if you have a government subsidy. Otherwise, missing payments may lead to policy cancellation.
Auto Insurance – A lapse could lead to your license being suspended or higher premiums when you reapply. Some insurers offer reinstatement if you pay quickly.
Home & Renters Insurance – If your policy lapses, your home may be left unprotected in case of damage, or you may not be able to renew your lease.
- Reinstating a Lapsed Policy.
Some companies allow reinstatement within a set period, though you may need to pay past-due premiums or prove insurability again.
- How to Avoid Missing Payments.
It is wise to set up automatic payments or reminders. Contact your insurer immediately if you’re struggling to pay – some insurers may offer temporary relief.
The amount of life insurance you need depends on your financial situation, your financial obligations, and your long-term goals. Here’s how to calculate it using a rule of thumb approach or the DIME formula:
- The Rule of Thumb Approach
A quick way to estimate your coverage is to estimate 10-15 times your annual income
Example: If you earn $70,000 per year, you might need $700,000 – $1,050,000 in coverage.
- The DIME Formula
DIME stands for Debt, Income, Mortgage, and Education
D – Debt: Include your loans, credit cards, and other debts (excluding mortgage).
I – Income Replacement: Multiply your annual income by the number of years your family will need support.
M – Mortgage: Ensure your policy covers your remaining mortgage balance.
E – Education: Factor in future college expenses for your children.
Example Calculation:
Debt: $50,000
Income: $70,000 x 10 years = $700,000
Mortgage: $200,000
Education: $100,000
Total: $1,050,000 in life insurance needed
- Other Factors to Consider
Existing Savings & Investments – Reduce your coverage by the amount of your assets.
Employer-provided Insurance – Some jobs offer life insurance, but it may not be enough.
Stay-at-Home Parents – Factor in the cost of childcare and household expenses.
You can borrow against your life insurance policy, but only if you have a permanent life insurance policy (like whole life or universal life). Borrowing against your life insurance policy is a good option for emergencies or investment opportunities, but if it is not managed carefully, it can jeopardize your life insurance benefits.
How Borrowing Against Life Insurance Works
Cash Value Requirement – You must have built up enough cash value in your policy before you can borrow.
Loan Amount – You can typically borrow up to 90% of your policy’s cash value.
No Credit Check – Since you’re borrowing from your own policy, there’s no loan application or credit check.
Low Interest Rates – Insurance policy loans usually have lower interest rates than bank loans.
Benefits of Borrowing against Life Insurance
Fast Access to Funds – No lengthy approval process.
Flexible Repayment – You can choose when and how to repay.
No Tax Penalty – Policy loans are not taxable, as long as the policy remains active.
Risks of Borrowing against Life Insurance
Reduced Death Benefit – If you don’t repay the loan, the amount of the outstanding loan is deducted from your beneficiary’s payout.
Interest Accumulates – Unpaid interest can grow, reducing your policy’s value.
Policy Lapse Risk – If the loan and interest exceed the cash value, your policy may lapse, leaving you uninsured.