Frequent Questions About A Life Insurance Policy
Choosing to purchase life insurance is a great idea, but it sure comes with a lot of questions. Here are some frequently asked questions when one is considering a life insurance policy.
How Much Life Insurance Policy Do I Need?
It’s important to take a good look at your current expenses, future expenses, assets and financial needs when determining how much life insurance policy you need. Typically, the amount of coverage you need should be based on what it would cost to help your family meet current financial needs.
What Type of Life Insurance Policy Should I Buy?
Every person is different, and each will require a different type of life insurance policy. Younger individuals may consider term life insurance, while others may prefer whole life insurance. There are also options for variable and universal. It all depends on what you can afford and what you’re looking for in an life insurance policy.
What is a Life Insurance Policy Premium?
A life insurance premium is what you owe on your life insurance policy plan each month. Most companies offer a month’s grace period to make a payment. With a permanent policy, your life insurer may use the cash value to cover premiums if you are unable to pay.
Do I Need a Health Exam for a Life Insurance Policy?
Most companies may require some background, depending on the life insurance policy you are considering to meet your needs. Policies will ask for family history and your medical history. The health exam generally provides basic information, such as height, weight, blood pressure and other basic information.
What Company Should I Choose for My Life Insurance Policy?
There are many companies that will want to offer you a life insurance policy. It’s best to find a company that is well known, has a good reputation and is financially secure. They should also have a good history of claims payment and customer service.
Who is the Beneficiary of My Life Insurance Policy?
When completing your life insurance policy, you will be able to name anyone as the beneficiary of your policy. Meaning the person you would like the payment to go to. Many people choose their spouses or partners, but some also include their children.
I’m Young, Why Do I Need a Life Insurance Policy?
Considering a life insurance policy when you are young is a smart choice, since your age will affect your premium payment. This rate will be locked during the duration of your policy. Therefore, if you have children or dependents in the future, you’ll have already secured a much lower rate.
Can I Have Multiple Life Insurance Policies?
It is okay to have more than one life insurance policy. They can all be from various life insurance companies, as well. Be careful of the amount you apply for, as insurance companies will seek answers as to why you need more coverage than you have.
Finding the right life insurance policy is key to securing the financial future of your family and dependents. Find the right company and plan that fits your needs, and your financial future is set – even if you aren’t there.