What would you do if your loved ones were left without a dollar to their name?
According to insurance industry group LIMRA, nearly half of Americans (46%) say they have put off purchasing the coverage they know they need. We understand life insurance can be an intimidating topic, but you can’t let that stop you from taking care of yourself and those who depend on it.
If people had more knowledge about their chosen policies beforehand, there wouldn’t be so many scare stories in media nowadays with what-if scenarios.
So before purchasing life insurance, make sure to ask your life insurance agent the following essential questions suggested by the insurance professionals at Powerhouse Insurance in Converse, TX:
Question #1 What Type of Policy Should I Choose?
Anyone who wants to invest in a life insurance policy has different goals and a unique financial situation, depending on which one is best for them.
Therefore, while someone you know may swear by a policy, it may not work for you. Therefore, addressing your financial position with an insurance specialist is critical, just as it is when purchasing auto insurance or homeowners insurance.
Moreover, policies come with many terms and conditions, and you cannot possibly choose one without fully understanding it.
Question #2 What Will Happen in The Event of Disability?
If something were to happen to you, having life insurance protects your spouse and children from potentially severe financial hardship. The “something” usually refers to death. But what about disability? The latter would also result in you being unable to earn your bread and butter.
Some life insurance companies provide specific payouts in the event of disability in some instances. A premium waiver provision allows you to forgo your premiums if you become disabled; this typically lasts six months.
On the other hand, some policies go so far as to let you claim the death benefit if you become disabled. This is not a common practice, and those who do it usually demand a significantly more significant premium for the function mentioned above.
Question #3 Can I Update my Policy?
You, as the policyholder, are in charge of any modifications you choose to make to your policy. Many people update their policies when a life-altering change occurs, such as getting married, becoming a parent, or purchasing a home.
Updating your life insurance coverage is often simple, depending on your insurance company. You may be able to alter your policy online through the customer support portal, or you may need to contact the company.
Life insurance is a significant investment that can secure your loved ones from financial hardship if you die. However, many people postpone this critical topic because it feels intimidating, costing them money and time and unnecessary financial trouble.