Choosing a life insurance policy is an important decision. It’s about preparing for the unexpected and providing your loved ones with a financial safety net after you’re gone, making finding the right coverage even more meaningful.
The first step to securing coverage is getting a life insurance quote. If you haven’t gone through the process before, it’s not as complicated as it may seem. Here’s how to prepare and questions to ask each insurer, so you can compare quotes and find a policy that meets your needs.
Gathering Your Information
You can get life insurance quotes in several ways. Most insurers have an online portal where you can answer a few questions. You can also speak with an insurance agent or broker, which can be particularly helpful if you want more guidance or information to help you compare quotes.
Insurers usually want some basic information about you to help them estimate your coverage and premium costs. Here’s what to have ready:
- The type of life insurance policy you want, such as term or permanent coverage
- How much coverage you think you need (consider your income and dependents)
- General information about your health, lifestyle, and age
- Details about your job
- Some financial information, depending on the carrier
Gathering this information ahead of time can speed up the quote-shopping process.
Guaranteed Acceptance Life Insurance
Coverage options starting at $9.95 a month!
Guaranteed acceptance life insurance without medical exams, health questions, or rate increases.
Questions to Ask an Insurance Agent
As you shop for life insurance, it’s important to collect some information of your own. Here are a few areas of focus and thirteen sample questions you may want to ask each insurer.
About the Company
Before purchasing a policy, ask questions to assess the company’s reliability and reputation.
What’s your company’s reputation and stability?
Providers should be excited to tell you about their ratings from AM Best or Standard and Poor’s.
What’s your track record with customer service?
If your loved ones need to file a claim, you’ll likely want a company with responsive customer support.
About the Specific Policy
Understanding your coverage’s ins and outs is important, so don’t be afraid to probe into the policy’s particulars.
Can you explain the coverage amount and premiums?
Get a clear breakdown of exactly what you’re paying for and how much it costs monthly or yearly.
Can I increase coverage later?
Life changes, and you may need a larger death benefit later. So, you may want a policy that can adapt to your needs.
What happens if I need to surrender the policy?
Most policies have charges or penalties for surrendering coverage before the end of the term. Find out what they are.
Can you explain what the policy doesn’t cover?
Life insurance policies may not cover some situations. Understanding them can help prevent surprises later on.
Are there optional benefits?
Some policies may have optional riders you can add to your coverage. Discover what riders are available and how they’ll increase your premium.
About the Underwriting Process
Underwriting is typically the longest and most in-depth part of buying life insurance. Understanding how it works, especially if you have specific needs, may help move the process along more quickly.
Will I need a medical exam?
Many policies require a short medical exam as part of the application. Clarify if you’ll need one. An agent or broker can also give you more details about the exam.
Does it matter if I have a risky job or hobbies?
Insurers typically don’t love risk. If you have a risky occupation or engage in high-risk hobbies (like skydiving), discussing it with the agent can help you learn how it may impact your policy and premium.
Will my health conditions impact my coverage?
Sharing more information about your health, especially if you have a specific condition, may provide insights into available coverage types and premium costs.
About the Application Process
Buying a life insurance policy involves multiple steps and can take a few weeks or longer, depending on your situation. So, it’s good to have a general idea about the process.
How long does it take to make a decision?
You can get a general application process timeline from start to finish. Some factors, such as additional health information, may extend the timeline.
If I’m ready to buy, what are the next steps?
Ask the agent or broker what comes next. That can help you fully understand the process, especially if you haven’t purchased life insurance before.
What can I do to make the application process smoother?
Finding out what information you can gather ahead of time could help expedite your application and underwriting.
Important Factors to Consider
No single life insurance question is more important than any other. But the answers you’ll get after asking the questions above can help you understand the insurer, your potential coverage, the cost, and the overall process. So, as you’re speaking with an agent or broker, pay close attention to the following aspects.
Company Reliability
Life insurance is a long-term commitment, so it’s important to feel comfortable that the carrier is reliable, financially stable, and cares about providing excellent customer service.
Transparency and Fit
The policy with the lowest price may not necessarily be right for you. In addition to considering price, find coverage that meets your needs and work with an agent who clearly explains coverage, exclusions, and fees.
The Application Process
Buying life insurance may take longer than you think. Understanding the steps, whether you need a medical exam, and how your lifestyle and job impact your coverage can help you set realistic expectations about the application and timeline.
Find the Right Coverage for Your Needs
When shopping for life insurance, you want to feel comfortable with the agent or broker. After all, choosing a policy is a big decision. So, work with an agent who listens to your questions and concerns and explains things clearly.
Ideally, the agent will tailor their recommendations to your needs and budget and won’t rush you through the decision-making process. From there, you can review the life insurance quote, compare it with others, and make the right decision for your situation.
If you’re interested in seeing if life insurance coverage with Colonial Penn is right for you, see below to connect with us.
Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
Colonial Penn is here for you!
Colonial Penn has specialized in making life insurance simple and accessible by offering it directly to consumers since 1957. Click here to learn more.
