Buying life insurance is one of the best ways to protect your loved ones even after you’re gone. If you’ve finally decided to buy a policy and are just starting to explore your options, you’ll quickly realize that it can be quite an overwhelming experience.
Asking the right questions can help you narrow down your options and make sure you get the right policy for your needs. Below, our Medical Profiles Inc. team shares 10 questions to ask before buying life insurance.
1. Do I Really Need To Buy Life Insurance?
Before exploring different policies, you need to ask whether you actually need life insurance. Many people purchase life insurance policies to protect their loved ones if they pass unexpectedly. This is especially crucial if you are the sole earner for your household.
Consider your financial goals and ask a financial planner whether purchasing life insurance would be beneficial for your family.
2. What Kind of Life Insurance Should I Get?
One of the first things you’ll learn when buying life insurance is that you can choose from several different types of policies, each with different death benefits, coverage terms, and premiums. You can choose from two types of life insurance policies:
- Term
- Permanent
3. What Monthly Premium Can I Afford?
Buying life insurance requires you to pay a monthly, quarterly, or yearly premium. Generally, the larger the death benefit, the higher the premiums will be, so you need to find a policy with premiums you can afford and a satisfactory death benefit.
4. Do I Already Have a Policy Through Work?
If you already have a life insurance policy through your employer, purchasing a secondary policy may be unnecessary.
5. Will I Lose Coverage if I Miss a Premium Payment?
Missing a premium payment for a term life insurance policy can result in your coverage lapsing. However, if you miss a payment on a whole-life or permanent policy, you could potentially use your policy’s cash value to pay that missing payment.
6. How Long Do I Have To Wait for the Coverage To Kick In?
Some life insurance policies have a waiting period of a few years. If you pass during this waiting period, your family may not receive some or any of the death benefits. However, some policies have coverage that kicks in as soon as you start paying the premiums.
7. Do I Need To Get a Physical To Get a Life Insurance Policy?
Many life insurance companies require you to complete a physical or paramedical exam before enrolling in a policy. This physical assesses your overall health and can determine your death benefit and monthly premiums. Insurance companies typically pay for this exam.
8. Is This a Reputable Life Insurance Company?
You shouldn’t purchase just any life insurance policy. Getting a policy from a reputable company can make the entire life insurance application process simpler while making things less stressful for your family in the event of your death. The best way to find a reputable company is by going to the National Association of Insurance Commissioners website and exploring different company reviews.
9. How Does a Company Pay Out the Death Benefit?
Life insurance companies can pay the death benefit in a lump sum or over several installments.
10. Can I Get a Plan With Final Expense Coverage?
Some policies have final expense coverage, which helps pay for funeral and burial costs. When buying life insurance, check your policy’s specific benefits to see if it includes this.
Book Your Paramedical Exam Today
Purchasing life insurance coverage often requires a paramedical exam. At Medical Profiles, Inc., we make it easy to get your life insurance physical by coming to you. Call (832) 251-3926 to schedule an appointment!
