Questions To Ask Of Life Insurance Companies Before You Buy

this post answers the following questions
1. What are the life insurance policy types?
2. Why is it important that the life insurance?
3. Why is it important to know how much life insurance?
4. Is it important to know the life insurance.
5. What other policy your life insurance?

Purchasing life insurance brings to mind piles of paperwork and lengthy discussions about the end of life for many who think about it. But while the whole business of life insurance may seem like something none of us wishes to deal with, it is a necessary task if our goal is to ensure the financial peace-of-mind for those we leave behind.

Deciding on the right company to provide you with the coverage you need can be confusing, with so many companies and the wide range of products on offer. Depending on an insurance agent to help you to decide may seem like a good idea, but how can you really know that the coverage being suggested is really going to be what your family needs?

The truth is that asking just a few simple questions of your life insurance agent can make the life insurance decision-making process much quicker and easier.

Policy Convertibility

Having a convertible policy means that you have the freedom to change policy types without having to undergo further medical questions. A policy with a conversion clause will usually cover you up to a certain age. And so asking about the age limit, as well as the benefits that will be available when you convert are good things to know.

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Policy Types

Understanding the types of policies that are available to you is the first step to choosing the right one. And any quality life insurance agent will be able to not only clarify the differences between life insurance policy types, but also explain the benefits and premiums associated with each.

Licensing

Don’t be shy about asking your agent about their licensing. They should be licensed in your state to sell the insurance products their company is advertising. The company should be licensed in your state as well. However, it’s important to keep in mind that your life insurance agent may represent more than just the company you’re considering.

Determining How Much Coverage You Need

Because life insurance can be purchased for so many different reasons like providing needed money for family expenses, it can be difficult to calculate just how much you need to adequately cover everything. Asking your life insurance agent to help you figure it out based on your circumstances and financial status can make things much easier.

Making a Claim

Your insurance agent can also help you when you need to make a claim. But the best time to ask them how is before the need arises. Understanding what information is included in your policy as far as who gets contacted about your passing and how long they have to make a claim is something your agent can tell you. They can also help you to understand the claims procedure and give you information about how long it will take them to respond to a claim.

Other Policy Specifics Your Agent Can Help You With

Anything that you feel is unclear about your policy should be requested in written form. This includes any verbal clauses. This will only service to clarify things further should the time come to place a claim.

Different policy types will have different expiry dates. It’s vital to know when your policy expires, as well as the grace period for late payments so that you can ensure the most complete coverage.

The renewability of your policy will be another important piece of information to know, as you may have to re-qualify at the end of your term. Ensuring that you fully understand when you may have to re-qualify is something your agent can definitely help you with.

Before you sign your life insurance policy, you can take it home to review it over a couple of days. This has become the norm with many companies, who offer their would-be clients a ‘free look’ for a week or more. This opportunity allows you to return the policy and receive a refund if you’re not satisfied with the information contained in the documents.

Guest author Adam Foley writes on a variety of topics, but is particularly well-versed on the topic of assessing and comparing life insurance companies.

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