Ask Yourself 7 Questions Before Buying Life Insurance

Last modified: March 30, 2022
Estimated reading time: 2 min

You might be planning to purchase a life insurance policy after reaching a certain milestone in your life. It is important to ask yourself a few questions to choose the right insurance policy. Tto help you with it, we have prepared 7 questions that you can ask yourself about life insurance, along with practical answers and advice. 

So, without further ado, let’s get started!

1-Do I need life insurance?

It is the most basic question, and most of the time, the answer is “YES.” Life insurance is a good choice if you want to help your family or loved ones if you are not there for them. 

There could be many reasons, and the earlier you purchase a policy, the lower the cost of monthly premiums.  

2-What kind of life insurance should I purchase?

To find the right life insurance policy, you will have to know the types of policies available. Usually, there are the following two primary categories.

Term life insurance

This insurance policy is easy and inexpensive. The payout terms are specific such as 10, 20, or 30 years. The policy ends as the term ends. This policy is an economical method to save for your family.

Whole life insurance

This insurance policy lasts throughout your life. It is more expensive than the term life insurance but comes with additional benefits. You can get a portion of your premiums as a loan or use it as cash value to pay for future premiums. 

3-How much life insurance do I need?

You should consider the payout, the amount your beneficiary will receive when you pass away. It can be a single person, multiple people, or even an organization. 

You can calculate the amount of insurance you need by considering all the expenses, including debt, loans, mortgage, funeral costs, educational costs, etc.

4- How can I get the best deal on my life insurance premiums?

If you do not want to spend more money than you need to, this may be the best question to ask a life insurance agent. There could be several ways to save your money. 

However, choosing a term policy is also recommended because it can help you save money while protecting finances for your heirs. 

5-Can I get life insurance if my health is not the best?

Life insurance companies usually determine your premium partially based on your health. Some companies require a medical exam, while some require users to answer a few health questions to purchase a policy. 

With most companies, your premiums remain unchanged throughout the policy duration even if your health gets worse. 

6-What if I want to increase my coverage in the future?

While purchasing the policy, you settle on the amount your heirs will receive if you pass away during the policy’s duration. In some cases, your need for life insurance may decrease when your children become adults and no longer need your financial support. In this case, some companies offer to convert your term insurance to a whole life policy and the amount. 

7-How easily can I get a life insurance policy?

When choosing a life insurance policy, you should consider how difficult it would be to get a policy. The process can be complicated with some companies as these may require a medical exam. In comparison, others require you to fill out an online application while answering some health questions, and you can get same-day coverage.

The bottom line

Before choosing any life insurance providing company, get proper information and ask the questions mentioned above. Once you are fully satisfied and understand the process, don’t hesitate to decide. 

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