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9 Questions to Ask Before Buying Life Insurance

Regarding life insurance, it is important to make sure that you have the best coverage for you and your family’s needs.  The more you know about a policy, the more prepared you will be as you choose the appropriate  life insurance for your family.

As you do a life insurance comparison, you will want to make sure that you ask your insurer the following 10 questions before buying life insurance:

1 – What exactly do I want from my life insurance?  Before finding a life insurance policy that meets your needs, you must first clarify what those needs are.  For example, do you want to leave your family an inheritance, or do you want to make a charitable donation?

2 – How much insurance cover is needed?  Everyone’s needs are different when it comes to the amount of life insurance cover they will need.  You will need to discuss this with your adviser so the two of you can go through your financial needs and determine the amount of cover you will need.

3 – What different types of life insurance policies are available?  The two main types of life insurance are group and individual.  Group policy – As a part of their employee benefits, many companies offer some form of life insurance.  With a group policy, you will get protection as part of a group and the cost of the policy is deducted directly from your paycheck.  Individual policy – You or another family member will own the policy, and you will have to complete a personal statement before being approved.  The benefit of having an individual life insurance policy is that you can tailor it to suit your needs and take it along with you when you switch jobs.

4 – What is included in my life insurance policy?  Be sure to read and understand everything that is included in your life insurance policy.  You will also need to know the exclusions.

5 – What are my premiums?  Regarding your premiums, be sure to ask your insurer or adviser the following questions:

  • What would cause my premiums to change?
  • How often can I pay my premiums?
  • What will happen if I miss a premium payment?

6 – How can my life insurance be upgraded?  There are plenty of ways you can adjust your life insurance policy.  To make sure you have some flexibility in your policy, ask yourself the following questions:

  • When does the policy expire?
  • Is the policy renewable?
  • Can I cancel the policy?

7 – When does the life insurance cover start?  Be sure to check with your insurer to find out the exact date your cover starts.  Keep in mind that there may be a delay between the time you sign up for the policy and the time your cover actually begins.

8 – Are there any discounts available?  To keep your costs down and get the most value for your money, be sure to ask your insurer if there are any special discounts that you may be eligible for.  It never hurts to ask!

9 – How can a claim be made on my policy?  It is definitely worth your time to discuss how the claims process works with your agent.  Even if everything is written in full detail in the paperwork, it is a great idea to go over it with your insurer so he can provide you with a more in-depth overview.

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