If you’re considering buying a life insurance policy, you need to be prepared. You can’t make a decision between different policies without all of the information about those policies. That’s why you need to know what questions to ask before you make your final choice.
Here are the top three questions you need to have satisfactory answers to before you purchase a policy:
How Much Coverage Should I Get?
This is perhaps the most important thing you need to know when you’re looking for an online term life insurance quote. There are two factors involved in getting the best answer to this question.
The first is that you will want to be certain that your loved ones have all the money they need to live on if something happens to you. This should be enough to replace your income for as many years that you want your family to continue their current lifestyle. (Our calculator can help you determine this amount.) The last thing you want is for your loved ones to be left with nothing after you die.
This amount is in addition to the money you’ll need to pay off any debts you happen to have. This is the second factor. You will want to calculate how much you have in debt and then add in what you think your family will need. Remember not to lowball the amount. This is what your family will need to continue their current lifestyle.
Does the Policy Offer Living Benefits?
A living benefit is one that actually allows you to access some of your death benefit while you are alive to help with expenses. The death benefit if something were to happen to you is decreased when you access this benefit. This is great if you have a serious medical emergency and need money quickly. The last thing you want is to be in pain after major surgery and discover that you can’t pay your bills.
While some term life insurance policies offer living benefits, most do not. Make sure you know if your policy does and what the rules are for accessing that money.
Will My Premiums Increase?
When buying whole and term life insurance policies, you shouldn’t have to worry about your monthly premiums increasing.
With term life policies, the term you bought after a 10-year or 20-year, rates will increase. Additionally, if you purchase an annual renewable term policy it goes up every year. Similarly, if your term policy expires and you want to renew it or purchase a new one, your premiums most likely will increase. This is because you’ve gotten older and may have developed additional health issues.
What other questions do you have about life insurance policies? Contact us at TERMdog today, to get more information and learn about your options!