Over 70% of Americans state life insurance is important but remain unsure about how it works.
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This confusion can become one of the main reasons for not signing up or finding a legitimate plan. For anyone that’s in a similar position and wants to sign up with a world-class agency, it’s time to focus in on the core details.
Here are some of the most important questions regarding life insurance.
1) What is Term Life Insurance?
Term life insurance refers to periodic or temporary coverage that has a pre-determined length. This type of life insurance is often the most affordable or cost-efficient option and recommended to the average person.
2) What is Whole Life Insurance?
Whole life insurance refers to complete protection from now to the end of one’s life. It has a fixed premium and guaranteed cash value attached to it. To learn more about this type of coverage, click here.
3) Is a Medical Exam Necessary?
This is going to depend on the type of life insurance one is signing up for.
There are term insurance plans that do not require a medical exam. However, these insurance plans will also factor this into the premium being paid. It’s important to consider all variables before making a decision of this nature.
The representative will mention all of this during the decision-making process including the pros/cons of each choice.
If a medical exam is taken, it can reduce the cost(s) associated with the plan over time. If the agency has more information to work with, it’s likely to offer a reduced rate based on the examination.
4) How Long Does It Take to Purchase the Policy?
In general, the waiting period will vary from agency to agency. There are several factors involved in the initial process including the initial consultation. The factors can also include details such as the type of policy, age, medical history, medical exam, and more.
Please note, all of these details are mentioned during the initial consultation and will be included in the waiting period.
The agency will use its various tools and methods to put together a reasonable package to ensure a quick solution.
For most individuals, the waiting period is not going to take long and should be completed within a few days (depending on the medical examination).
5) Can the Premium Increase Over Time?
A term life insurance plan offers complete protection and will not have evolving premiums. During the predetermined period that’s been approved, the premium will remain the same as established by both parties.
Once the period is over, the premium can increase based on the assessment.
For whole life insurance plans, the premium doesn’t increase and is fixed throughout the coverage period.
6) What are the Reasons for Life Insurance?
Signing up for life insurance is important and brings along with it a wide array of advantages. Here are some of the most important ones.
- Peace of Mind
- Easier to Manage Death-Related Expenses
- Offers Financial Protection
There are additional reasons for life insurance and it’s important to consider all of them before signing up.
7) Can You Get Life Insurance With Prior Health Issues?
Yes, a person can sign up for life insurance with previous medical issues.
There are several options available to clients including high-risk life insurance policies. Whether a person has dealt with heart disease, cancer, stroke, or more, there is a valid life insurance policy available. Some policies come up with a 2-4 year waiting period which means the full benefits will not be paid out if the policyholder passes away within this period.
The agent will be more than happy to work out these details and come up with a good fit. It’s important to be honest during the initial assessment and make sure everything is penned down. This can help keep things simple and ensure the right fit is found as soon as possible.
8) How Do You Prepare for a Life Insurance Exam?
There are several steps needed to prepare for a life insurance exam and it’s important to follow them.
- Watch Your Diet (Eat Leafy Greens, Fruits)
- Drink Lots of Water
- Refrain from Alcohol/Exercise (24 Hours in Advance)
- Fast for 8 Hours Before Exam
- No Breakfast or Coffee On Day of Exam
Please note, the insurance agency may provide additional steps based on the established standards.
9) What Do Medical Exams Look For?
Let’s assume it’s time to have a medical exam for your life insurance policy.
The medical exam is going to be simple and doesn’t have to be complicated. It is going to include a urine, nicotine and blood test. These tests are done to look for a variety of medical conditions by testing the heart, liver, kidney, pancreas levels.
The tests will also look for drug usage, serum HIV, and cotinine.
10) How Much Does Life Insurance Cost?
This is the most common question that’s asked by people.
In general, life insurance policies will vary depending on a multitude of factors. Each factor is going to have an impact on how much the policy costs and the features it offers. For example, a person with a term life insurance might get different rates to someone that has a whole life insurance.
The same can be said for someone that has cancer in the past to someone that has a clean medical history. Feel free to ask the agent more about the costs, features, and everything else associated with the premiums.
11) Does Family History Impact the Life Insurance Plan?
Yes, family history can have an impact on the life insurance plan in some cases. This can include cancer, heart disease, and stroke. However, most of these questions are limited to one’s immediate family.
12) What is the Right Term?
The right term is going to vary depending on your situation and what you’re looking for.
For some, whole life insurance might make more sense and that will also factor into the costs that are paid. While others might prefer a shorter term life insurance policy that ends on a specific date.
These are decisions one has to make while speaking to an agent.
13) What is Deemed as “Tobacco Use” by Agency?
In general, any type of cigarette use will be deemed as tobacco use.
However, a cigar (once a year) might not come under the same category. It is all based on the type of use in such cases.