Are you shopping for a insurance policy? Then you must have so many unanswered questions and inquiries. Guess what? You’re not the only one feeling like this, but you’re not in this alone either. With the right set of questions and answers everything will be more unambiguous and you can feel confident you’re doing the right thing. Check this out!
Picking the right insurance policy for your needs and requirements might seem like troublesome, at least, at first sight. This is why so many of us hesitate to do it; some because of the lack of time and others because of the lack of information. Choose not to be one of them. Instead, get the answers you need.
We have gathered together a list of some of the burning questions closely linked to getting insured. What’s more, we have the right answers for you too.
We are aware that the insurance industry can be confusing for some of you, thus let’s uncover some of the mysteries concerning this burning topic.
The guide to getting the best insurance policy
As much as you might think that you know about insurance policies, there are always factors such as renewals or changes to your policy that might mess everything up. So, before this happens, try our top questions and answers to clarify your misunderstandings.
So what should you be looking at when searching for a new insurance policy? Your ultimate goal? Focus on these aspects:
- Get info about the coverage of your policy.
- Did you pick a trustworthy insurance company?
- Does it provide financial stability in case something happens?
- In the end, is it at a reasonable price?
Top 5 must-ask insurance questions
Check out this list with some of the most common insurance questions you might be wondering about. It’s all explained right here so don’t worry, you’ll get the grip on things after skimming this. Enjoy and happy reading!
Question no. 1:
What’s the difference between term and permanent life insurance? Which one should I choose?
Before making up your mind on the right life insurance policy, you should choose, make sure that you understand the differences between the various types out there. So, to set things clear:
Term Life Insurance:
As the name says it, it’s made for a certain period of time (for instance, 10 or 30 years) to provide a specific death benefit. It is only paid if the insured dies during the term period.
Permanent Life Insurance:
Or Whole life insurance, is for some easier to understand as the benefit is guaranteed, it accumulates cash value and can be eligible for annual dividends.
In what concerns choosing the one for you, it depends on so many factors. There is no straight answer here. You should pick the one that fits your needs and requirements. To make the best choice, talk to an insurance consultant.
Question no. 2:
When applying for a life insurance, what factors really matter?
Well, this depends on the company you choose. Have you ever heard of ‘underwriting’? Underwriting is the process that the insurance company uses to classify its applicants based on several factors. This is how it determines the cost of providing coverage.
Some of the key aspects are:
- The applicant’s age, sex and habits
- The applicant’s medical history
- The applicant’s family medical history
- The financial status of the applicant
- Job and hobbies
Question no. 3:
How can I make up mind if I really need a life insurance?
Consider the following things when deciding if you want or not a life insurance. If at least one of the following top reasons sound familiar, then you most likely need a life insurance policy.
- If you want to care for your children/spouse/parents after you pass away
- If you want to keep your business safe
- If you want to make sure your family will continue paying for the mortgage
And so many other reasons…
Question no. 4:
Can I reconsider my decision once I signed?
As a matter of fact, you can. The optimal situation would be – not having to reconsider. Get all the info you need and make up your mind before you apply for a life insurance.
But to answer the question you can return the policy usually between 10-30 days, depending on the insurance policy you choose. This period is called the ‘free-look’ period.
But, having a life insurance is not all about staying safe in case you pass away. Some see it as an investment and just build up cash value. You can always cancel the policy and get the money you need, when you need it. But be careful, it usually depends on the policy you choose to purchase.
Question no. 5:
If my employer pays me a life insurance, do I still need to get my own?
Let’s not mix things up. We’re talking about group policies and individual policies. Group policies usually guarantee one-two years’ salary, anyway a limited amount of time. While, a personal life insurance is a totally different thing. And something else to consider, if you get another job, you might just not be able to use it anymore.
Shopping for your life insurance…
So, getting a life insurance might be confusing at the beginning, but with the right specialist by your side you can get all your answers to make the best decision. Do your research before making up your mind as this is a serious topic in one’s life. Get an insurance agent to guide you and prepare your own set of questions. Don’t be ashamed or afraid to think out loud, thus you can be positive you’re seeing things from the right perspective.
Start with the above questions, but make sure you jot down your own worries too. An experienced insurance agent will get you straight answers and at the end of the day the insurance policy that fits not only your profile, but your wishes and necessities.