As you shop for life insurance, you are sure to have many questions. Some people call an agent to get the right answers. Others search online for information. And unfortunately, there are some people who never learn anything – they simply buy a policy and hope for the best.
There is a good chance that you are faced with some of the same questions as many other consumers.
Here are five common questions that you may want to answer before buying a policy.
1. Is it possible to purchase more than one life insurance policy?
It is a common myth that you are only allowed to have coverage from one policy and one company. Believe it or not, some people have 5+ policies. This may be overboard for you, but don’t let anybody tell you that you are only allowed to purchase one policy.
2. What happens if I am running short on cash and don’t pay my premium?
Most companies offer a grace period of one month. During this time, your policy is still active. That being said, if you don’t pay within the grace period there is a good chance that your coverage will lapse.
Tip: if you have a policy with a cash value, your insurance company may use this money to cover any missed premium payment. This may or may not be something you are interested in, so make sure you know your provider’s stance on this.
3. As a young, single individual do I really need to purchase coverage right now?
If you don’t have any financial responsibilities, you can get away with not purchasing a policy.
However, you should remember one thing: the younger you are the healthier you are going to be (for the most part). For this reason, you have the best chance of purchasing an affordable life policy.
It is best to buy young so that you can lock in a low rate. While not always possible, this is something you should strive for. Even if you don’t yet have a family that relies on your income.
4. Is there anyway to avoid the medical exam?
This is a common question as most people don’t want to go through this process before buying coverage.
If you are part of a group policy, such as through your employer, it is likely that you will not have to take part in a medical exam.
There are also guaranteed issue policies that require no medical exam or questions pertaining to your health. While this may sound like a dream come true, you are going to pay a lot more for coverage. After all, the insurer has no way of knowing if you have any health concerns.
5. Who should be my beneficiary?
This is a question that you should address on your own, with the help of your family. You have the right to name your beneficiary. If you are married, your spouse
is the most obvious choice. That being said, some people choose a child as the beneficiary. The choice is yours, so make sure you consider all your options.