Many people have no idea about the intricacies of life insurance. Most of them don’t even want to know because the notion of dying isn’t something anyone wants to think about. Still, it is important to consider those who will be left behind after your demise, especially the ones who may not be able to handle certain financial obligations in your absence.
Here is a list of important questions that you need to ask about your life insurance to prevent last-minute surprises.
- Will life insurance through my employer be enough?
Though you may have signed up for life insurance through your employer, the coverage offered might not be adequate for your needs and that of your family. Besides, even if your company offers the best plan, it becomes null when you stop working there.
- Do I have to take a medical exam to get a life insurance policy and why?
Yes, you need to take a medical exam as it almost always part of the traditional life insurance underwriting process. It lets your prospective insurance company know the probability of your death during your policy’s term.
- What does the medical exam entail?
It is similar to a basic physical examination. The insurer’s testing company takes your vitals, blood sample and sometimes urine sample, and an EKG (electrocardiogram); all these tests are done for free. You can not go to your own doctor for the tests, as insurers don’t like potentially biased third-party practitioners performing the exam.
- Who is an underwriter?
An underwriter works for the insurance company and evaluates your risk levels and health conditions before you are insured.
- What is a death benefit?
This is the amount paid to your beneficiary, untaxed and in a single lump sum after your death, by the insurance policy you have chosen.
- What can disqualify me from life insurance?
One of the things that could get you disqualified from life insurance is lying to your underwriter about your health or medical records. If your lie is found out before the information given is processed, you will be denied coverage. However, if the truth comes to light after you have been insured, your policy will be canceled. In the worst-case scenario, your death benefit will not be paid out.
- What are some important questions to ask before deciding on the amount of life insurance to buy?
Some of the questions to ask before deciding on the amount of life insurance to buy are as follows:
- How much does life insurance cost?
- What are the types of life insurance that I can choose from?
- How much life insurance should I consider?
- How are death benefits paid?
- Will my premiums decrease or increase over time?
- Can I save money while getting adequate coverage?
Once you have the answers to these questions, you can then decide on the amount of life insurance you’re willing to buy, which would benefit your family and loved ones.
How often should I review my life insurance policy?
Your life insurance should be reviewed as often as possible, especially if it is the term life insurance or you’ve taken policy loans or partial surrenders along the line. This way, you can know the amount has been reduced from your cash surrender value and death benefit.
The questions mentioned above and their answers are sure to guide you in purchasing the right life insurance. Do you need help securing the right life insurance policy? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your coverage needs today.