Questions To Ask Your Agent When Shopping For Life Insurance

Life insurance is something that you purchase to protect anyone you would leave behind if you were to pass away. Everyone has a different life and different people in their life. As such, everyone has different life insurance needs. It is a good idea to meet with an agent and discuss your needs. Here are some questions to ask the agent as a part of this conversation.

Would they recommend a term or whole life policy?

A term life insurance policy is just life insurance. You pay for the policy every month during the term, and if anything were to happen to you during that term, the insurance would pay out to those you left behind. A whole life insurance policy adds up to a cash value over time. Once you reach a certain year, you can withdraw the money from that cash fund. Whether term or whole life insurance is a better choice for you will depend on your income, age, other investments, and many other factors. So, it is a good idea to tell your insurance agent about your life and let them make a recommendation one way or the other.

How much insurance should you have?

Some people only need a small life insurance policy to cover funeral expenses and other related expenses. Other people need a policy that will provide income for a spouse and children to live off of for a number of years after their death. If you give your insurance agent an idea of what you want the life insurance plan to actually cover, your agent should be able to recommend an amount. The larger your life insurance plan, the more you'll pay each month.

How many beneficiaries can you have on a policy?

Some life insurance policies only allow you to have one beneficiary. Others allow you to have two or three beneficiaries. You should have an idea of how many beneficiaries you want to put on the policy when you sit down with your agent. Ask what their various policies allow for, and choose a policy that allows for the number of beneficiaries that you desire. If the plan your agent has otherwise been recommending does not allow the beneficiaries you need, then the agent can likely recommend a similar policy that does.

Asking questions is a great way to learn more about life insurance and find the policy that's right for you. Don't hesitate to ask any other questions that come to mind. For more information, contact your life insurance agent.