Questions to Ask Your Agent About Term Life Insurance

  • How long has the insurance company been in business?
  • Knowing how long an insurance company has been in business is important because it could ease a potential purchaser's mind as to the economic health and viability of the company. Also, the longer the company has been in business, the better the brand recognition to the consumer. Many consumers feel more comfortable with a business that's been well established and well known.

  • How large is the insurance company?
  • The size of an insurance company can be an important consideration when deciding whether to purchase a term life insurance policy from the company. A large company may offer a better rate or more variety with its products than a smaller competitor. Also, a large company may offer the stability that a potential purchaser is looking for when making such an important purchase. However, a smaller company may be more willing to work with you to find a satisfactory solution in order to gain your business. Whether purchasers go with a small, medium, or large insurance company, they should evaluate an insurance company based on the best rates that fit their budget and offers them the best policy that fits their financial needs.

  • What are life insurance exclusions?
  • Exclusions are specific hazards listed in a term life insurance policy in which benefits will not be paid. For example, rock climbing is an exclusion that will not pay out benefits to beneficiaries if the insured dies while engaging in this activity.

  • Are discounts available?
  • Many insurance companies will offer its customers discounts for having multiple insurance policies with the company. For example, you may get a reduced rates with your insurance company if you also have a health, auto, and home insurance policy with that same company. Check with your current insurance company to determine if discounts are available.

  • What are premium policy add-ons?
  • A term life insurance policy may include optional benefits, or add-ons, that supplement the existing policy. For example, an accidental death, premium waver, and disability income rider are specific add-ons that improve the value of a policy. Reviewing add-on options are important in ensuring that a policy provides the maximum coverage and benefits.

  • How are claims processed?
  • Every insurance company has its own procedures in place to process a life insurance claim. When filing the claim, the insured must follow the steps outlined by his or her company, otherwise, the claim may be denied based on a technicality. It is important to check with the company's claims department to ensure the claim is properly filed.

  • What is your customer complaint rate?
  • A potential customer can easily find out how many and the extent of complaints against an insurance company. The customer may contact that state's department of insurance to find the customer complaint rate or the local Better Business Bureau to determine complaints. The company also may be a resource for finding customer complaint rate.

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