In a survey from the National Association of Insurance Commissioners, it was reported that less than half of American consumers feel confident making decisions about their insurance, and only 2 in 5 consumers were able to answer basic questions about insurance coverage.
Because life insurance is such a necessary form of coverage, it is essential that you understand the details of your policy before you buy it and while you’re covered. There are many aspects of life insurance to think about—the cost, the benefits, and your health, to name a few—and it can be overwhelming for a new customer. We’re here to help you break down the details of life insurance and get the information that you need. When you meet with your life insurance agent, we recommend asking these questions.
Question #1: What Policy Best Fits My Needs?
Life insurance is not a one-size-fits-all policy. Rather, there are countless types of policies and forms of coverage, and they’re all best suited to customers with different needs and life situations. Are you looking to get coverage and not have to change it for the rest of your life, or do you just need a policy that can give you coverage for the time being? Do you have children or other dependents? Do you have any pre-existing health problems? What’s your lifestyle like?
When meeting with your agent, be sure to be completely honest about your life and your medical history. This will help them to find the policy that best suits you and will offer the most relevant coverage.
Question #2: What Will I Get?
Before committing to a policy, make sure you know exactly what you’ll be getting and what will be expected of you. You should understand:
- How long the policy will last
- What your premium is
- The policy’s rate of return
- How the death benefit functions
- If there are any living benefits
For the everyday person, insurance can be difficult to understand. We encourage you to ask your agent all of the questions you need to understand the ins and outs of your policy: after all, it’s your life.
Question #3: What Are the Requirements?
It is possible that your lifestyle or medical history could exclude you from certain insurance policies. Because of this, it would be prudent for you to understand what the application process would be for your policy of choice. Depending on the policy, you may be asked to undergo a medical examination. If that is something that you are uneasy about, you should ask your agent about what will be expected of you.
Question #4: What if My Health Changes?
Your life insurance coverage and your premiums are in part based on your lifestyle and overall health, but as you all know, your health is not constant throughout your life. One of the most common questions that people have about life insurance is whether they will retain the same level of coverage as they age naturally or if they experience a significant change in their health. If you have a whole life policy, your premiums will not change. In other cases, ask your agent how the policy will shift as you grow older.
In the case of disability or serious illness, most life insurance policies have riders available for an additional cost, and these riders provide optional benefits. Even if you do not purchase a rider or separate insurance policy, certain life insurance policies do provide benefits for policyholders who become disabled. It varies based on the policy, so make sure you ask your agent what would happen under their coverage.
Question #5: What if I Can’t Pay?
Much like changes in health, running into financial troubles is not something that people expect, but is something that should be prepared for. Depending on the policy, you will have several options if you find yourself unable to pay your premiums, but it’s best that you ask your agent to get a specific answer.
If cost is a concern for you, we recommend purchasing a policy as soon as possible. Age is a significant factor in determining your premium, and you’ll never be as young as you are right now. In addition, making healthy lifestyle changes (such as quitting smoking and drinking or practicing safe driving) will also prolong your life and reduce your premium costs.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.