We get it. It can be overwhelming to choose a life insurance policy that will suit your needs.
This is why it’s important to shop around, do your research and ask questions. Here are 7 questions to ask (and answer!) before buying life insurance. Your answers will have a big impact on what kind of life insurance you get, how much you get and how much it will cost.
Why Do You Need Life Insurance?
This is one of the first questions you should ask yourself. Why are you looking for a life insurance policy?
Are you looking to provide protection for your family in case of an early death? If so, you might want to opt for a permanent life insurance. Do you want to buy life insurance to provide coverage for an additional debt? Then, you might opt for term life insurance for a short-term solution.
What Type of Coverage Do You Need?
Ask yourself what type of coverage do you need? Do you need term life insurance that only lasts for 10, 20 or 30 years? Or do you need a more permanent solution that stays with you forever? The costs involved in these two types of policies can be dramatically different.
What are the Different Types of Life Insurance Policies?
There are multiple life insurance policies out there. Hence, it is important to do your research first before you decide on which one to buy. To know more about the different types of life insurance policies, read through the articles on our website.
Who Should Be Your Beneficiaries?
Upon purchasing life insurance, you will be required to select a beneficiary to receive your policy benefits in the event of your untimely death. The beneficiary can be an immediate family member such as your spouse, your kids, siblings, etc.
Or, you can also choose an entity or an organization. Before you start shopping around for an insurance policy, decide on the beneficiaries first.
What Happens if You Don’t Die?
As ironic as it may sound, some people get upset knowing that they won’t get anything back on their term-life insurance if they don’t die within the term. If this is something that concerns you, it is best to speak to your financial advisor or insurance agent to know what happens if you don’t die before your term policy expires.
What Happens If I Miss a Payment?
This is another great question for your insurance agent. Usually, life insurance companies will void or stop your policy if you miss a payment. However, there are some that provide some leeway and grace periods for late payments.
Can I Upgrade My Current Policy?
If you already have a life insurance policy in place, you may be looking to get an upgrade. Conversion privileges or upgrades allow you to renew your policies and pay higher premiums for higher rewards.
However, most conversion privileges have a time limitation on it. This is why it is best to speak with your insurance agent about this as early as possible.