When you decide to purchase life insurance, you are making a good financial decision that will affect you for many years to come. Due to the importance of this insurance for you and your family, there are five questions you should ask your new life insurance agent immediately:
How Much Life Insurance Do I Need?
You should start a conversation with your new life insurance agent by asking how much life insurance you need. The life insurance agent will need to ask you some questions to help you figure this out. For example, the agent will need to know your current income amounts and what outstanding bills you have to determine how much your spouse would need if you died prematurely to carry on in the same lifestyle. Another factor that will influence this decision is how much you can afford to pay for an insurance premium each month.
Does My Policy Build Cash Value?
The nest question you need to ask is whether the policy you are buying builds cash value. Some life insurance policies have a built-in savings feature that allows the cash value to build up over time. That cash value can come in handy if you hit financial trouble down the road, need money to put your child through college or need extra money during your retirement years. If you are paying into a policy, it makes sense to be able to access some of the cash when you need it.
What Happens If My Needs Change?
During your lifetime, you will go through different phases in which your life insurance needs may change. For example, you may need more life insurance when your children are young and still dependent on you, and you may need less in later years. Since you never know what the future holds, make sure you ask what happens if your life insurance needs change. Can you simply up the amount of coverage you have, or will you need to buy a new policy?
Can I Borrow from the Policy?
Another good question to ask is whether or not you can borrow from the policy in case tough times do hit. There are policies that allow you to borrow money from them. If you pay the money back plus interest, your death benefit will not decrease. A Medicine Hat business insurance specialist says this can be extremely helpful to those who cannot get a loan from a bank for any reason in the future. You would still be able to buy a new car or pay for medical expenses.
How Does My Beneficiary Get the Money?
Finally, don’t forget to ask questions about your beneficiary. Find out how to change your beneficiary if you ever need to do that and how the beneficiary gets the death amount. Knowing that your beneficiary will have the money for your funeral and burial expenses can give you peace of mind.
While life insurance can be tough to understand, ask these questions to ensure you are getting the best product for your needs.