Opting for an appropriate life insurance policy can prove to be a daunting task. However, you need to be fully aware and possess complete knowledge about the policy coverage preferences. Also, you need to be updated about the company from which you intend to buy a life insurance policy.
Following is a list of questions you need to ask.
What is the background of the company?
You need to do a detailed research about the company from which you are planning to get a life insurance. Learn about the background, current rating and customer service provided by the company. You also need to question the insurance agent regarding his license and experience in the industry.
What is your insurance requirement?
Every person has specific insurance needs and this should be correctly determined before actually buying a policy. Mainly, there are two factors that need to be considered: how much money you require to pay off your debts and how much your family members will need after you are no more. However, different insurance companies have their own criterion to determine a customer’s policy requirements. You need to question the agent and understand how your coverage needs have been calculated.
What are the terms and conditions of your policy?
You should ask the life insurance agent about the fundamental terms and conditions of your policy. This includes queries like the duration of your policy, the amount of premium you need to pay, the guarantees associated with the product, how the death benefit works etc. You need to be clear about the owner of the policy, who is funding it and who takes the final decision on the beneficiaries. Also, make sure you are aware of the fact whether your policy is an open or a closed one.
When will you get returns from your policy?
Another important question to ask is when you can expect returns from a life insurance policy. Life insurance policies are actually long-term saving schemes and it can take anywhere between five to ten years to generate positive returns. So, as a new purchaser of a life insurance, you need to understand that there will be no immediate returns.
Will your policy adjust with the inflation rates?
The inflation rates increase each year and it is imperative for you to know about the worth of your policy after your death. For instance, a policy amount that might seem enormous today will not hold the same value after 30 years. Therefore, ask your insurance provider if your policy will automatically get adjusted with the growing inflation rate.
We, at Smith-Reagan Insurance Agency, offer affordable life insurance in McAllen, TX. For more information, you can call us at (956) 399 – 1353.