Common Questions to Ask a Life Insurance Agent
July 20, 2023
For all the benefits life insurance offers, it's a complex asset and can be intimidating if you've never shopped for a policy. Fortunately, your agent can answer all your questions and steer you toward coverage that meets your needs. To start your research, look at some of the questions agents often hear.
How Does a Life Insurance Beneficiary Receive the Funds?
When you take out a life insurance policy, you'll list the people you want to receive the payout as beneficiaries. You can change these as necessary, and only the individuals named at the time of your passing will receive funds.
There are several payout options to ensure convenience for recipients. The beneficiaries generally choose the dispersal method, but specific policies may allow you, the policyholder, to decide. The following are the most common funds dispersal methods:
- Lump sum payment
- Fixed-period or lifetime annuity
- Specific income payout
Each has pros and cons, so discussing each with your agent is critical.
Do Insurance Companies Require a Medical Exam?
The answer is: It depends. Depending on your age and your health some policies may require a medical exam. Conversely, others don't. A medical exam gives the insurance company a better idea of the risk associated with insuring you. Policies that don't require an exam are quicker to get, making them a good option if you need expedited life insurance.
The good news is that the insurance company will take care of finding and paying a healthcare professional. During the exam, expect the following:
- An EKG
- Giving blood samples
- Getting your blood pressure taken
- Providing a urine sample
- Having your weight and height measured
You'll also need to answer medical history questions.
What Do Underwriters Do?
Just because you apply for life insurance coverage doesn't mean you'll receive it. Insurance companies have eligibility requirements to ensure they don't take on too much risk.
Underwriters look at applicants' information and determine how much risk they present. The risk may be higher because of age, being a long-time smoker, having serious health conditions or having a dangerous job. High-risk insureds tend to have higher premiums. Underwriters calculate these premiums with the help of software.
What Are the Different Kinds of Life Insurance?
It is the most frequently asked question for life insurance agents. Understanding the various types of insurance ensures you find a policy that takes care of your loved ones. For example, you'll look at very different coverage if you want to access funds for end-of-life care versus coverage that only pays out during your working life.
It's a good idea to familiarize yourself with the various types of life insurance before you talk to your agent. That way, you can have a list of questions ready. The following are the most common policy types:
- Term life insurance
- Variable life insurance
- Whole life insurance
- Universal life insurance
Conclusion
Engaging with a life insurance agent can be a crucial step in securing the financial future of yourself and your loved ones. The process of selecting the right life insurance policy may seem overwhelming, but armed with the right questions, you can make well-informed decisions that align with your unique needs and goals.
Remember that each person's situation is different, and the answers you receive from your agent should be personalized to your specific circumstances. Take the time to thoroughly understand the policy options, coverage types, and any potential riders or add-ons that might enhance your protection. A trustworthy agent will be happy to address your concerns and help you navigate through the complexities of life insurance.
Ultimately, if you are proactive and well-informed and you work closely with your life insurance agent, you’ll be able to build a comprehensive and tailored life insurance plan that will safeguard your family's future for years to come. By asking the right questions and making informed decisions, you can rest assured that your loved ones will be protected and supported, even in your absence.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.