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Taking the first step to getting a life insurance policy can feel a tad overwhelming. Especially when you don’t know what you don’t know, that’s why we created this blog to go over all the questions to ask when buying a life insurance policy.
Asking questions like, what is the difference between term and whole life insurance? What factors can impact my rates? When should I buy life insurance? And What type of life insurance should I buy? Are all important when considering taking out a policy of your own. Educating yourself by asking as many questions as you can when buying life insurance will help you to make an informed decision for yourself and your family. You’ll make sure that not only is your family protected but that your financial goals are, too.
So get out your pen and paper and get ready to take the first step into protecting your loved ones with a life insurance policy (or at least know what questions to ask when you’re ready to take the leap).
Already know what questions to ask and ready to finally get some answers? Contact us, and we’ll give you the 4-1-1.
So, you’re ready to purchase life insurance, or at least ask a few more questions to determine if life insurance makes sense for you. We love to see it and are here to help.
As you start looking into buying life insurance, it’s important to ensure that you’re well-informed on your plan, your potential eligibility for insurance, and what factors might impact your eligibility and/or premium rates now and in the future. It will also help you understand how much you’ll need to budget for your coverage.
The first step in learning about life insurance is to get familiar with what options are available to you.
Life insurance coverage offered through group insurance plans (typically from your employer) can vary a lot. Not to mention, they are designed to meet the general needs of a group rather than being tailored to your specific requirements.
How much coverage they offer can range from a flat amount that is offered to each employee to being based on your individual annual earnings. If you have a group benefits plan, it’s important to understand what your plan offers, what restrictions or limitations are in place, and just how much coverage you have.
And if you’re meeting with an insurance advisor to discuss what additional coverage may be needed to fill any gaps, it’s important you share any information you have about your current group life insurance coverage. That way, we can make a note of it when determining how much–and the type of– insurance you need (plus make sure you never have too much or too little coverage).
Note: We never recommend relying solely on your employer coverage as your only life insurance protection because you do not own the policy. (Technically, you’re ‘renting’ it from your employer while you’re employed there.) That means changes to the benefit plan can be made at any time, and you’ll have no control over them. And if you leave that job, you could end up with a gap in your coverage!
When you’re learning the ins and outs of life insurance, your insurance advisor is the perfect person to speak with. They’ll put you and your needs first and do everything they can to support you as you purchase your insurance. Plus, they will be there to support you in the event that you ever need to make a claim. Your advisor can answer just about any questions you have about your plan, your premiums, and your eligibility!
It’s important you disclose the following information to your insurance advisor so they can accurately determine any possible outcomes and solutions that can impact your rates or eligibility.
Remember your insurance advisor is on your side and wants to find the plan and premium that is best for you. The only way they can do that is by having all the information and facts available.
…and any other questions you have about your eligibility, your policy, and your premiums.
It’s important to know that you can get life insurance even if you have a pre-existing or long-term medical condition. That being said, you need to disclose any health concerns you have to your insurance advisor when looking at your policy options.
Health conditions can be seen as a risk to the insurer, which means they can impact your life insurance rates and eligibility. Depending on the severity of your pre-existing health condition, you may still be able to get a standard life insurance contract. But sometimes, the insurer will add an additional amount to the premium, which means you’ll pay more for the coverage.
Getting a life insurance policy can be kind of like picking out a pair of shoes. There is no standard right shoe that will fit and meet the needs of every single person. And although it’s always good to do your research, at the end of the day, you have to pick a pair that feels right for you and your needs.
That’s why we recommend asking yourself some key questions to help you work with your advisor to pick the policy that best fits your specific needs.
Take the time to ensure you understand what your life insurance policy covers. Know that you’re never inconveniencing anyone or overstepping. You have every right to know all the details about your life insurance. Your Insurance Advisor will be more than happy to discuss all of the following with you:
A death benefit– the money that will be paid to your loved ones if you pass away– is a big reason why many people secure life insurance. Ask the following questions about the death benefit in particular:
The first two years of every life insurance contract fall under what’s called the “incontestability period.” That means that should a claim arise during this period, the insurer can contest it. If this happens, they’ll do their due diligence, making sure that no omissions were made or misinformation was provided when you purchased your insurance.
So that means as long as you are honest and truthful on your application, there should be a smooth process for your family’s claim. This is why it’s important to disclose everything about your health and risks when speaking to an insurance advisor. It’s our job to make this process as smooth and easy for your loved ones. Let us ensure you’re covered so your family doesn’t have to.
Life insurance can feel like a scary and overwhelming thing. No one wants to picture what life will look like after they are separated from their loved ones. Setting up a life insurance plan now can give you the peace of mind you need to know if anything were to happen to you, your family would be taken care of.
Knowing what questions to ask your advisor, yourself, and your company is the first step to getting the right coverage for you, your family, and your life.
When you’re ready to learn more about what life insurance would look like for you and get some answers to the questions we listed above, simply reach out to us. Our insurance advisor will get in touch and set up a time to chat through everything you need to know so that you can determine what plan makes the most sense for you.