Common Life Insurance Questions
When it comes to life insurance, many consumers have questions. What are the best policies? How many policies can you have? Do you really need life insurance? If you have ever asked one of these life insurance questions, here are some answers you need to know.
One common question you may be pondering is whether you are allowed to own more than one policy. You absolutely can. In fact, owning more than one type of policy is often a good investment. You may want to have a large term policy in place while you have children at home, and a smaller whole-life policy to cover your funeral expenses no matter what age you die.
Another question is whether or not you need a policy. If you have a family and do not have sufficient investments to allow them to carry on their quality of life without your income, than you absolutely do need one. Also, if you do not have enough money to cover your funeral expenses, you need one, even if you do not have a spouse and children at home.
This question becomes more complicated if you are single and have enough money to pay your funeral expenses. If you are young, you are highly “insurable.” This means that a policy will be very affordable, because you are at low risk of death, providing you do not have a health condition. It may make sense to get a policy now in case you have a family in the future. In another 10 years, your policy will cost quite a bit more simply because you are older.
You may be wondering why you have to have a medical exam to get life insurance. The medical exam is used to determine your relative level of health. If you are overweight or have high blood pressure, for instance, your premiums will be higher because you are not at optimal health. Sometimes “guaranteed issue” or group policies do not require a medical exam. In some situations you will pay more for this type of coverage, so be sure to shop carefully.
As you can see, buying life insurance is not as simple as you might think. There are many considerations to make before purchasing a policy. Make sure you are working with a qualified agent who can answer all of your life insurance questions. This will make the process of purchasing insurance as smooth as possible.
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