5 Questions to Ask Your Life Insurance Adviser about Your Life Cover

Key questions to ask your life insurance adviser before applying for your policy

Taking out life insurance cover is not a process to rush. With so many different policy options available, each with their own set of conditions, it can be difficult to assess what events you will actually be covered for. This article will offer provide some key questions to ask your adviser to help you understand the different cover options available and what to look for in your policy.

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1. What Is Term Life Insurance Exactly?

Term life insurance will pay off a death benefit to your family if you die or have been diagnosed with a terminal illness (with 12 months to live) at the time that the coverage is still in place (within the agreed "term"). Term life insurance is the cheapest type of life insurance plans in Australia because of its flexibility in choosing your own period of coverage, without sacrificing the quality of protection that is important to you.

2. What Are You Trying To Accomplish with Your Life Insurance?

This is the one question that you should ask yourself and to make sure that your insurance provider can align your intention with a policy that suits your needs. Think about the reasons behind why you are getting term life insurance. Do you want to protect your loved ones just in case you die unexpectedly? Or, have you accumulated an additional debt that would put your surviving partner/spouse in a difficult financial situation if you were no longer able to earn an income to support the family? Are you going to leave money behind to a charity?

Most people outlive the term and thus do not get any kind of refund from all the premiums paid. Therefore, it is essential to assess your current and future needs, and anticipate your policy requirements to match accordingly. It may sounds complicated, but you can always ask for advice from an insurance adviser or speak to your insurance provider.

3. What Choices Of Term Life Insurance Are Available?

Group or individual are the two kinds of term life insurance available. Most companies give their employees term life insurance as part of a group. It’s taken right out of your paycheque, and the only obligation to get coverage is to fill out a questionnaire. It’s easy to do. You can easily join up with your company’s health insurance plan. Most group policies don’t necessitate a physical exam, either. They also make automatically payment through payroll deduction so you won’t even notice it.

4. What If I Don’t Die within the Specified Term of the Life Policy?

If you outlive your term length in your life insurance policy, your premiums will most likely go up significantly if you still require life insurance coverage. Upon reaching the end of your life policy, you may consider getting a new policy, letting the coverage expire, or upgrading the policy (thus, continuing the policy coverage).

5. How can I Upgrade My Policy?

Most plans will let you go from a term to a permanent policy. The conversion choice could have a time limit associated with it, like up to age 75 or something. The most liberal term policies enable you to convert to any type of policy like whole life or universal life.

6. Where Can You Buy A Policy?

An insurance agent is the surest bet for finding a good policy. If you want group coverage, you can simply ask your employer.

Steps to Find the Right Life Insurance Company

The Financial Security Of The Company

One of the most important aspects of selecting a life insurance company is the financial standing of the company. You should check the company’s financial situation before setting yourself on the track of applying to the company and purchasing the policy.

You’ll feel confident and have peace of mind knowing that the company can pay back any financial claims that you make to it.

A financial adviser can investigate the financial security of a company or your state’s insurance department might be helpful in that regard. It’s crucial to analyse the company’s claim history too. This can give you a clue about whether or not it has the resources to pay back its claim. Look at its past history.

The Life Insurance Company’s Licensing In Your State

You may have picked a great company, but it may not be licensed to operate in your state. Contact your local Insurance Department to see whether it is licensed to operate in your state or not. Agencies and companies have similar names so make sure you’ve obtained enough information about the company you are thinking of applying for.

The Premium Cost Of The Life Insurance Company You’re Choosing

The premium you’re required to pay to keep your life insurance policy will vary. Some companies offer special provisions, and others have them off the table. Some companies just charge an arm and a leg, and some companies are dirt cheap. Comparing similar insurance plans offered by different companies can give you a good idea of what the price you should be paying is.

The premium cost is sometimes linked to the product quality. There might be huge differences between policies offered by different companies. If you just select a company based on general criteria, then you might fail to select special provisions that could protect you in the future.

The Customer Service Of A Life Insurance Company

The customer service of a life insurance company is also important. It is much easier to work with a representative that can work with and handle all your needs vs one that is negligent, silent, or hostile. Living with a customer service representative that is hard to deal with can put a hamper on any claims that you may make. Finding out the companies that have the highest customer service ratings is a good idea.

Conclusion

While life insurance companies have many factors that determine how eligible you are to get life insurance, one aspect you may be overlooking is that it’s just as important for you to select a good life insurance company. They should be put under the same microscope as you are when you’re evaluating them.

You can’t fall short and just forget to check up on them and selecting the cheapest policy. You may get yourself into a world of hurt if you select a life insurance company that doesn’t meet your needs in the event of a serious injury or claim. Furthermore, selecting a good life insurance company can give you peace of mind.

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