Meeting a life insurance agent? Ask these important questions
Life insurance is one of the most important - if not the most important - financial protections you can have. Not only can it help you while you're alive but it can also provide some much-needed financial security for your loved ones for years to come. Policies range dramatically from tens of thousands of dollars to more than $1 million, giving applicants both young and old a wide range of options to choose from.
Sorting through those options and the related costs and terms, however, can be an arduous process. This is why many people rely on a life insurance agent to guide them. Life insurance agents can help answer any questions you may have and get you set up with a policy that works for you and your family.
But what questions should you have for an agent? You'll want to go into a potential meeting as prepared as possible. In this article, we will break down four questions you should be prepared to discuss when meeting with a life insurance agent.
If you're in the market for life insurance, start by getting a free price quote here.
4 questions for your life insurance agent
Here are four important questions you should have ready for your life insurance agent:
What kind of policy do I need?
There are many types of life insurance policies on the market. There are term, whole, variable, universal, supplemental and no-exam options. Your policy may be one of these, or it may be a mix of multiple types (e.g. no-exam term life insurance). Make sure you're familiar with all of these types (and their costs) so you and your agent can have an informed discussion about what kind of policy you need. This question will largely be determined by your goals and budget. But since those two factors are different for everyone, it helps to break down the pros and cons of each with your agent to determine the best policy.
You can get a free term life insurance price estimate online today.
How much life insurance do I need?
This is another question that will be relative to each individual but is still vital to get right. The amount of life insurance you need will be greatly influenced by your age and the number of financial dependents you have. But it will also be determined by your lifestyle and existing debt.
For example, if you have decades left to go to pay off your mortgage, you'll probably be recommended a policy that can cover that debt in full should you die before the loan is paid off. There will be multiple other factors to consider, however, so be sure to tackle this question during your first meeting with your agent. You don't want to overpay for life insurance, but you also don't want to underpay and get too little coverage. An agent can help you determine the figure you need.
How much should I pay?
Speaking of overpaying, this question is also crucial to get right. How much should you pay for life insurance? Remember, life insurance is almost always cheaper for younger and healthier applicants. The older you are, the more likely you are to pay higher premiums for lower coverage. That said, prices and policies range dramatically. You could be young with a high premium or a senior with a lower price. A life insurance agent can give you a ballpark figure on how much you should be paying, but to get an exact figure you'll also want to do your own research.
You can start by getting a free price quote here now.
Who should I list as my beneficiaries?
Most life insurance applicants are automatically inclined to list their children as their beneficiaries. While that isn't necessarily the wrong approach, it could become problematic if those children are minors. Should you die and your beneficiaries are not of legal age, they may have to go through a legal process to obtain the funds. Restrictions on how much money minors can access via a life insurance policy vary throughout the country. In some instances, a court may require an adult guardian to distribute the funds. So be sure to review your options with your agent before listing beneficiaries (and make sure to ask who should be the primary and who should be listed as the contingent beneficiaries).
The bottom line
Life insurance can provide financial security and peace of mind both for policyholders and their loved ones. To secure the best policy for your needs, go into the process clear-eyed and prepared. By having these four questions ready for your meeting with your life insurance agent, you'll be better able to establish a baseline as you work toward building a cost-effective and valuable policy.
