Deciding to buy a life insurance policy is one thing; choosing a particular insurance provider and plan is another – in this blog, we will list down the most essential questions that Bill Schantz of Mid Atlantic Financial LLC feels one should ask when purchasing life insurance.
Questions to Ask When Buying Life Insurance:
Question 1 – Is Life Insurance a Must for Me?
Bill Schantz recommends consulting a reliable insurance agent or financial advisor to determine if you even need life insurance at the current stage of your life. Your agent or advisor can also help you decide the right amount of life insurance for you, as well as the ideal insurance term.
Generally, you should consider buying life insurance if you feel that your partner and/or your children will have to face financial difficulties should you pass away.
Question 2 – Which Kind of Life Insurance Should I Buy?
There are many different types of life insurance policies, each one designed to cater to a specific budget and need. A few examples of life insurance policies are: universal life insurance, whole life insurance, and term life insurance. Bill Schantz wants buyers to decide if they want their insurance to last a lifetime or for a particular number of years.
Once again, consult a trustworthy life-insurance agent to determine your insurance needs and understand the options at your disposal.
Question 3 – How Much Does Life Insurance Generally Cost?
Just like the policies themselves, the cost of life insurance can differ from person to person – even for the exact same plan or policy.
Apart from the plan that you are purchasing, factors like age, existing illness, family history of certain ailments, driving record, habits like drinking or smoking, all play a part in determining the exact cost of your life insurance.
For this reason, Bill Schantz cautions buyers to make sure that their chosen policy is within their budget.
Question 4 – Will I Need to Undergo a Physical Exam In Order to Obtain Life Insurance?
Whether a physical examination is required or not will depend upon your age, general health, and the policy that you are purchasing. A physical exam is part of the process through which an insurance provider determines the level of risk they will be undertaking as a result of insuring your life. The results of the physical examination are used to calculate the appropriate premium for you. Generally, the cost of the physical exam will be endured by the insurer.
Question 5 – What Happens if I Delay or Miss My Premium Payment?
If you delay your premium payment or fail to make it altogether, your policy benefits might be impacted. After a certain number of delayed or missed premium payments, the insurance provider has the right to cancel your policy.
Question 6 – Can the Amount of Premium Change with Time?
For whole life policies, the premium amount stays consistent throughout the length of the term. However, if you buy a term life policy, you can expect fluctuations in your premium, which are often a result of corresponding changes in your health and age. Universal life policy premiums, too, are subject to variations.
Our Final Thoughts:
To sum up, buying a life insurance policy is often confusing and overwhelming. We hope that this blog will help you ask the questions that you need to in order to purchase an insurance plan that is right for you and your loved ones.