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After You Purchase Life Insurance, Read Your Policy Carefully:
After you get insurance and receive your policy, be sure to check for accuracy and read it carefully. Be sure that you personally check on & understand the following information.
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Is my personal information correct, does it accurately represent my health & habits?
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Do the premiums or policy values change over time?
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Are there any parts of the premium or policy values that isn’t guaranteed?
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How will the timing of premiums or withdraws affect interest or benefits on the policy?
“Life Insurance is the most lied on type of industry with dishonest agents or representatives frequently forging information to secure easy commissions. Always review your Life Insurance policy for accuracy no matter where it is obtained, even from us. If you need help reviewing your policy you can Click Here for our free policy review video.”
If You Are Getting A Policy, Assess The Future Of Your Policy:
Does your policy build a cash value? If so, how quickly? What will your options be down the road? Some policies build cash value slower early, then faster later on—others build gradually over the lifetime time of the policy. Some policies even use your cash value to pay premiums when your cost of insurance gets too high, & most Term policies wont build cash value at all. Be sure to ask your agent or company representative for an illustration showing future values and benefits.
If You Have Life Insurance Already, Assess Your Current Policy:
It is important to review your current policy to ensure it still fits your needs as well as compare it to any policy you might be looking to buy. You may be able to change your current policy to get the coverage you want. You may also have experienced changes to your health that impact your ability to get a new policy or a premium you can afford. Above all, do not cancel your current policy until you get your new policy packet & verify the paperwork is accurate.
“Click Here for our free policy review video.”
Life Insurance
Buyers Guide
As prepared by the Life Insurance Help Desk.
How Do I qualify For Life Insurance?
A application for Life Insurance is processed through Agents either over the phone, via mail, online, or in person. Information required to complete an application will included all of your personal identification information as well as information about your health, habits, & medical history that the insurance company will use to determine your risk. Depending on the type of policy, the insurer might require you to have a “Medical Review” performed by a physician and/or answer a “Health Questionnaire” to assess your eligibility for the policy against a set of predetermined criteria by the insurance company. Policies that do not require detailed health information typically cost more, provide less coverage, and have waiting periods before coverage takes effect.
“Never be afraid of the a health review or assume you are ineligible for coverage. Each company is different, one might decline you for the same health another would accept you for. Life Insurance can be obtained at any health status & nearly any age. Let your Life Specialist find the company for you.”
How Much Life Insurance Do You Need?
How much coverage is needed depends on the financial needs that will be left behind when an individual passes away. The following list contains many of the basic questions that should be asked to when determining your coverage needs for your unique situation.
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Does anyone depend on me finically?
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How much of the family income do I provide?
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How will my family pay for my final expenses & repay debts after my death?
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Do I need temporary protection or lifetime coverage?
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Would I like to leave a legacy by leaving money behind to family or charity?
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If I have coverage through my employer, is it enough to meet my obligations?
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Will my employer provided coverage still be available after retirement?
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What will insurance cost if I wait to get it? Can I afford it then?
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Will my health remain stable enough to qualify if I put this off?
“Too often people put off planning for final expenses only to face higher premiums, unexpected health issues, or limited coverage options later on. Take this into consideration when thinking about coverage.”
This guide is not intended to endorse any insurer or policy type
What is Life Insurance?
Life insurance policy is a contract outlining a financial agreement between an individual & an insurance company, that provides money to chosen beneficiaries when the insured person dies. In exchange for regular payments, called premiums, these policies helps protect loved ones by reducing the impact of; lost income, sudden debt collections, end of life medical expenses, funeral costs, etc. that might be left behind when the insured person passes on.
Policy Truthfulness:
It is important to tell the truth on the application, answer each question accurately, & review these questions before you sign. A insurance policy is a legal binding contract between the insured & the insurance company. Misrepresentations on a Life Insurance policy are a form of insurance fraud. Meaning if the insurance company discovers false statements on your application after it issues your policy or in the processing of a claim, they may be within their rights to reduce your coverage, cancel your coverage, or even deny the claim entirely.
Your Affordability:
Your age, health, & habits determine your risk. Policies with more extensive questioning give the insurer a clearer understanding of your risk which typically leads to lower premiums with higher coverage amounts vs. policies with less or no questions asked. Before getting a policy make certain you can afford the premiums & be sure to check for any potential premium increases. Some policies are sensitive market earnings or investments, which can lead to higher premiums when earnings are low. Be sure to ask about what the highest premiums you might have to pay to keep your coverage & understand any changes you may face.
Your Beneficiary:
A Beneficiary is a individual, entity, or organization who you wish to receive your policy’s pay out upon your death. You will commonly need the Date of Birth or Social Security Number / Tax ID Number for all beneficiaries. You may also be asked to explain your beneficiary designation if they are not a family member, this is referred to as defining “Insurable Interest”. It is also advised not to designate a minor as a beneficiary since a insurance company will not pay a claim to a minor until they come of age. Instead, consider leaving your policy to your estate or trust.
It is important to review your life insurance policy every few years to keep up with changes in your policy, coverage, premium, or coverage needs. Life events such as; divorce, children, adoption, death, marriage, retirement, or job change will frequently altered insurance needs. The insurance company can provide you with statements & illustrations that will assist with this review.
Review Your Life Insurance Policy Regularly
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