Term Life Insurance Articles
Questions To Ask Your Term Life Insurance Provider
2010-09-08
There are many important questions that you should ask any insurance provider when you are considering a term life insurance quote. Here are some of those questions:
What are the exclusions? Every policy has certain exclusions. Death by suicide is a common exclusion. You want to know what is not covered. That being said, you don't want a policy with too few exclusions because you may have to pay a higher premium for that type of policy.
What does this clause mean? Ask about any parts of the proposed policy that are not clear to you. Sometimes the terminology can be confusing, and you want to be sure you understand what you are buying.
What is the expiration date? A term life insurance policy is for a specific period of time. After that period of time, you have to initiate a new policy. Be sure that you know when the policy ends and how to get a new policy before that one expires so that you have no lapse in coverage. Look carefully at the term life insurance quote to be certain that the expiration date is in the quote.
Is the policy convertible and for how long? Normally a term policy can be converted to another kind of life insurance policy such as whole life insurance without having to prove insurability again. However, you normally have a limited amount of time to request that conversion.
What are the premiums? Find out the exact premium you must pay and when the payments are due. Ask the insurance provider if your premium rate is fixed or variable, and if variable, how much you can expect it to vary.
Is the policy renewable? You want to know if you can get a new policy at the end of this one without re-qualifying. You want to know when you would have to re-qualify, if at all.
Is there a loan clause? Cash value life insurance policies may allow you to borrow against the value of the life insurance. Ask when the money can be borrowed, what the interest rate is and what payments have to be made.
How will my family be able to make a claim? This is information that your family will need if you should die. Find out how long they have to make a claim, what documents will be needed and how long the company has to respond to the claim.
When considering a term life insurance quote, you will want to know the rate and be sure you can afford it. However, it is also important to get the answers to your questions from the insurance provider so that you find the right policy for your family.
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There are many important questions that you should ask any insurance provider when you are considering a term life insurance quote. Here are some of those questions:
What are the exclusions? Every policy has certain exclusions. Death by suicide is a common exclusion. You want to know what is not covered. That being said, you don't want a policy with too few exclusions because you may have to pay a higher premium for that type of policy.
What does this clause mean? Ask about any parts of the proposed policy that are not clear to you. Sometimes the terminology can be confusing, and you want to be sure you understand what you are buying.
What is the expiration date? A term life insurance policy is for a specific period of time. After that period of time, you have to initiate a new policy. Be sure that you know when the policy ends and how to get a new policy before that one expires so that you have no lapse in coverage. Look carefully at the term life insurance quote to be certain that the expiration date is in the quote.
Is the policy convertible and for how long? Normally a term policy can be converted to another kind of life insurance policy such as whole life insurance without having to prove insurability again. However, you normally have a limited amount of time to request that conversion.
What are the premiums? Find out the exact premium you must pay and when the payments are due. Ask the insurance provider if your premium rate is fixed or variable, and if variable, how much you can expect it to vary.
Is the policy renewable? You want to know if you can get a new policy at the end of this one without re-qualifying. You want to know when you would have to re-qualify, if at all.
Is there a loan clause? Cash value life insurance policies may allow you to borrow against the value of the life insurance. Ask when the money can be borrowed, what the interest rate is and what payments have to be made.
How will my family be able to make a claim? This is information that your family will need if you should die. Find out how long they have to make a claim, what documents will be needed and how long the company has to respond to the claim.
When considering a term life insurance quote, you will want to know the rate and be sure you can afford it. However, it is also important to get the answers to your questions from the insurance provider so that you find the right policy for your family.
