Common Life Insurance Questions and the Answers you Need
By USInsurance.com Staff
At USInsurance.com we receive many questions and concerns from you about life insurance. There are those concerned with price, availability and even those of you that question whether you should take out a policy. The one commonality is your interest to learn more about life insurance. At USInsurance.com we are here to help and have put together a list of what you want to know in order to help you make the best decision when choosing a life insurance plan.
1. What are the different forms of life insurance? In general, life insurance is either a term life plan or whole life insurance plan.
Term life insurance is the least expensive form of coverage that covers a specific amount of time that does not accrue interest, whereas whole life insurance is managed by a life insurance company and creates a cash value for your beneficiary. [Additional information about the different forms of life insurance plans can be found here.]
2. Can I have more than one policy? You sure can. Depending on your needs you can have multiple plans for the same insurance agency or multiple agents.
3. I’m a 20-year-old female, healthy and active. Do I need life insurance? That’s great that you are maintaining a healthy lifestyle and we certainly recommend that you keep this up. But regardless of how fit and young you are you should purchase a life insurance plan. Purchasing a plan early on will not only provide your family with protection should anything happen to you, but buying early guarantees that you will save money. Plans purchased early have lower interest rates that don’t increase as you age.
4. My insurance provider asked me for my medical record. What are they looking for? Your interest rates and policy plans are determined by your health, so our 20-year-old friend is on the right track. Insurance companies are looking into your family history, if you have any recorded illnesses, whether you had any surgical procedures as well as your height and weight. Some insurance agents will also ask you for urine and take your blood pressure, and based on this information, will determine a plan for you.
5. How much do insurance policies cost? Well, it depends (see information about health), but, in general, the older you are the more money your policy will cost. So, a 30-year-old male who purchases a term policy for 30 years might expect to pay $400 a year whereas a 50-year-old male may pay $1,000 for the same policy, which will continually increase as he ages.
6. How do I buy life insurance? Visiting USInsurance.com is a great start. Here you will be connected to agents in your area to start meeting and discussing what options would be best for you and your family. When talking or meeting with life insurance agents, be sure to do your research about a company. Check their letter grade from rating services like Standard’s & Poor’s, Moody’s and Fitch Ratings.
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