Life insurance is something that you and your family need in case something were to happen to you.
Life insurance is a very long contract with words and phrases that seem like they were meant only for agents to understand. It can be an intimidating process when figuring out your insurance options. A study found that less than half of American consumers feel confident about making life insurance decisions. (With all that confusing language, who can blame them?) But perhaps more frightening is that only 2 out of 5 consumers could answer basic questions about their own policy. To get a better understanding of your own life insurance policy, here are questions you should ask your life insurance agent.
- From whom am I buying? The first thing that should be cleared up, before deductibles and coverage limits, is the company from which you are buying. What credentials does your agent have to make them a professional life insurance agent? How long has the company been around? These are things you need to know.
- Does the policy provide living benefits? You’re looking for 4 things: control, liquidity, use, and equity. Control means the policyholder is clear on who is funding it, who gets to decide who the beneficiaries are, and whether the policy remains open or closed. Liquidity means the policy owner knows how much they can take out from their policy. Use and equity contribute to the understanding of what money can be taken out, for what purpose, and the rules on borrowing money.
- Will the benefit adjust for inflation? Inflation and deflation are natural parts of the economy. $500,000 now may seem like a lot of money, but it could be worth half that after adjusted for inflation. Some insurance companies do their best to keep up with inflation, while others include adjustment with a rider. Be sure you know what your policy states.
To learn more about life insurance and what it can do for you, contact Donald Weiss Insurance Services. Our dedicated team will help you determine your coverage needs, helping you pick the right policy with the right term for your goals. Don’t be left with questions when buying this essential coverage; call us today!
