How Much Will It Cost?
This is the most asked question I hear and the one question that has the most variables possible. It would be like asking a random car salesman, “How much does a car cost?” They would need to know a lot more information about what you are looking for to give you an answer. Some cars cost $1,000 and some cars cost $1 million. It takes a few minutes of conversation to be able to dial in the answer.
The main determining factors associated with the cost are:
• Goal/Why Do You Want It/Your Specific Purpose
• Type of Insurance
• Length of Term (if applicable)
• Coverage Amount
• Age
• Health/Medical (past and present)
• Prescriptions
• Gender
• Smoker/Non-Smoker
• What State You Live In
• Optional Riders
Is There A Medical Exam/Testing?
This could be either a yes or a no. Many coverage options do not require any exams or testing, but many do. If it is required, you will not be able to use your family physician. You will need to go to a provider that is selected by the insurance company.
How Soon Will I Be Covered?
This depends largely on whether a medical exam is required or not and whether it is automated or full underwriting. If an exam and full underwriting is required, it can take up to a couple of months in some cases. If no exams are required and automated underwriting is possible, the policy can be issued and you can be covered in as little as 30 minutes.
What Is The Difference Between Term and Whole Life?
The short answer to this is that Term is temporary and Whole Life is permanent. Term will expire at the end of a set number of years, or term. Whole Life will never expire and will be there until it pays out. For a more complete comparison, refer to one of my previous blogs “Life Insurance In Simple Terms”.
Will My Premiums Or Coverage Amount Change?
For most policies, the answer is no. Usually, the premium and the coverage amount are set and do not change. With that being said, there are exceptions to this. There can be a graduated-payment schedule, variable premiums, or a payment term where your premiums will stop altogether. Likewise, some policies can increase in value. These are great things to discuss in detail with your agent to strategize for your specific needs and goals.
Can I Change My Beneficiary Or Have More Than One?
Yes and Yes. You can absolutely change your beneficiary if needed. It is also recommended to have a contingent beneficiary that would be in place in case the primary beneficiary has died as well. You are also able to multiple beneficiaries that would each receive a payout in whatever percentages you determine ahead of time.
