Choosing A Life Insurance Agent - Questions You Should Ask Yourself

We’ve discussed general questions you should ask a life insurance agent. Equally important are the questions you should ask yourself. Thinking about these questions will help you target your main goals with purchasing a life insurance policy. An agent will help you answer these questions, and many more, during a consultation, but it is a good idea to think about them beforehand to prime yourself to your key life insurance needs.

Why do I need Life Insurance?

This is probably the most basic question to answer. This simplest answer is that if others depend on you as a source of income, you should as least explore your life insurance options. Life insurance is a way to replace income and cover expenses in the event of your death. The amount your beneficiaries receive can be used to cover things like mortgages, car payments, college education, and your final expenses. Additionally, some life insurance policy types have the ability to accumulate cash value and the value can be borrowed against or withdrawn.

How much life insurance will I need?

As you are probably aware, there are many flavors of life insurance. However there are a few basic categories that will correspond with specific needs. For instance, if you are only looking for coverage for a set period of time, then you may want to talk to an agent about term life. If you have a desire to be covered for the entirety of your life, you will want to discuss whole life or permanent life insurance polices, such as guaranteed universal life, fixed indexed universal life, or current assumption universal life. What will work for you will depend on your current age, life expectancy, and what you will be able to afford. Term will often be significantly cheaper than permanent of whole life, with the disadvantage of being set for a specific period. Whole and permanent policies will be more expensive, but may have additional features, like cash value accumulation or flexible premium options, that could be attractive to you.

Am I looking to use life insurance strictly for coverage or to accumulate a cash value?

You may have determined why you need life insurance, now you need to determine what the policy will be used for. If you need a basic line of coverage, term life may be something you want to discuss with an agent. If you are looking for a policy that has the potential for cash value accumulation, then you should discuss guaranteed universal life, fixed indexed universal, or current assumption with an agent. These policy types accumulate an accessible cash value that many policyholders use during their life to finance emergencies, provide supplemental retirement, and fund a child’s college education.

Do I want fixed or flexible premium options? Can I make it work if my premiums increase?

Although term life is often the cheapest form of life insurance, premiums typically increase as you get older. With whole life, the premiums are generally fixed. With universal life insurance, there is flexibility in premiums, provided you are able to meet a premium target amount.

Do I want benefits in case of disability?

This question speaks to the variety of riders and additional features available with insurance policies. Most will incur higher premium amounts. If something like disability or long-term care is a concern of yours, be sure to address this with your insurance agent.

Do I want benefits in case of disability?

This question speaks to the variety of riders and additional features available with insurance policies. Most will incur higher premium amounts. If something like disability or long-term care is a concern of yours, be sure to address this with your insurance agent.

Finding the best life insurance program is a process and the results depend on your unique situation, objectives, and needs. A trusted, highly rated life insurance agent is the best way to position yourself toward your financial objectives.

We have created a database of vetted professionals so that you can compare and find the right advisor for you. To begin, use the search tool on the left or contact us at 1.877.614.0141.