Term Life Insurance Articles
4 Tips For Talking To Term Life Insurance Agents
2010-03-19
Life is precious and the last thing you want to do is waste time worrying about how your family will cope financially if you pass away. One of the best things you can do is contact your insurance agent to discuss term life insurance, but before you make that call you need to know a few things about this type of coverage so that you can ask coherent and meaningful questions. Start by asking your term life insurance agent the difference between term life insurance and whole life insurance. Whole life insurance is designed to last throughout your lifetime, while term life insurance lasts for a specified period. This is important to know depending on what phase of your life you are in at the time of purchase. If your policy term expires while you are still alive you will not receive any payment at all.
Once you've decided to ask your agent for a term life insurance quote, you'll need to ask them about the actual term of the policy itself. Some forms of this insurance renew annually, while others have longer terms ranging from 5 - 30 years. The choice is up to you, so make sure your agent realizes you know you have options and encourage them to explain the differences. Keep in mind that the longer the term of your policy, the less you'll end up paying in premiums - as long as you get your agent to guarantee a fixed rate throughout the entire term.
The next thing you'll want to do is ask the agent helping you with your life insurance quotes, to discuss your options for converting your policy to a cash value. The cash value is especially important if you should suddenly find yourself in dire financial need - for example, after a major illness. If you're in an accident or suffer from some sort of catastrophe, you should be able to convert your policy into cash without having a medical exam first, to pay your hospital and doctor bills.
Finally, ask your life insurance agent what factors each company uses to calculate the cost of a term life insurance policy. Some companies will charge more if you are a smoker, if you have a preexisting medical condition (like diabetes or cancer), if you work in a dangerous environment, if you regularly participate in dangerous sports, or if you decide to add the aforementioned cash value option to your policy. You'll also want to find out in what instances your term life policy will not pay out - like if you commit suicide or die participating in an otherwise excluded activity. It's your right to understand your policy, so never hesitate to ask questions!
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Life is precious and the last thing you want to do is waste time worrying about how your family will cope financially if you pass away. One of the best things you can do is contact your insurance agent to discuss term life insurance, but before you make that call you need to know a few things about this type of coverage so that you can ask coherent and meaningful questions. Start by asking your term life insurance agent the difference between term life insurance and whole life insurance. Whole life insurance is designed to last throughout your lifetime, while term life insurance lasts for a specified period. This is important to know depending on what phase of your life you are in at the time of purchase. If your policy term expires while you are still alive you will not receive any payment at all.
Once you've decided to ask your agent for a term life insurance quote, you'll need to ask them about the actual term of the policy itself. Some forms of this insurance renew annually, while others have longer terms ranging from 5 - 30 years. The choice is up to you, so make sure your agent realizes you know you have options and encourage them to explain the differences. Keep in mind that the longer the term of your policy, the less you'll end up paying in premiums - as long as you get your agent to guarantee a fixed rate throughout the entire term.
The next thing you'll want to do is ask the agent helping you with your life insurance quotes, to discuss your options for converting your policy to a cash value. The cash value is especially important if you should suddenly find yourself in dire financial need - for example, after a major illness. If you're in an accident or suffer from some sort of catastrophe, you should be able to convert your policy into cash without having a medical exam first, to pay your hospital and doctor bills.
Finally, ask your life insurance agent what factors each company uses to calculate the cost of a term life insurance policy. Some companies will charge more if you are a smoker, if you have a preexisting medical condition (like diabetes or cancer), if you work in a dangerous environment, if you regularly participate in dangerous sports, or if you decide to add the aforementioned cash value option to your policy. You'll also want to find out in what instances your term life policy will not pay out - like if you commit suicide or die participating in an otherwise excluded activity. It's your right to understand your policy, so never hesitate to ask questions!
