Hello, This is Chad McMahon with Protect with Insurance in beautiful Prescott Valley, Arizona. I’m here to answer some questions about Life Insurance. So, there’s this client I have, she asked me to go over this policy that she had gotten written for her some three months ago by an insurance agent.
Now, it was far from what she thought she was getting! She didn’t understand that the policy required for her to wait two full years before the full coverage could kick in. Such a policy is called a Guaranteed Life Insurance Policy, but she didn’t know that. So, she asked me what’s the easy way to know what she’s getting and how can she trust her insurance agent to be straight with her.
So, I told her that there are a few questions that you should make sure to ask your agent, especially if your concerns aren’t being addressed. The first thing you need to know about a life insurance policy is whether the coverage will start right away or not.
The next thing you should find out is if it is a level policy; are the coverage and the total cost going to match the amount on the check you will get toward the end of the policy? Are the premiums going to stay the same throughout the duration of the policy? What is the cost or premium going to be per month, per quarter, or per year, and will it stay the same and balance the check at the end?
At times, and this is quite rare, it will be a descending or an ascending term policy. But what I mostly help my clients with is level policies – level term, level final expense whole life, and level accidental.
You also need to know if your policy will expire at some point or not. While whole life policies last your whole life, term life policies expire at the end of the term. So, if you opt for a term life policy, make sure to ask whether you will get your money back at the end of the term or not.
You should also ask if there are any living benefits, which might sound strange since, technically, life insurance is for when you die. But there are living benefits in situations where, say, you get a chronic illness, you are in critical condition, or you are suffering from a terminal condition.
Now, if your policy has living benefits, you may get some or even all of your money back for your treatment. Especially if it’s a larger policy such as a two or three hundred thousand dollar policy, it will make a great difference.
Accidental policies mostly come with death benefits only, but at times, there’s disability added to them as well. Term policies can go either way; they can be purely death benefit based or they can have living benefits attached to them as well. Same is the case with whole life policies.
Make sure to also ask whether your policy accrues a cash value – for more information on this, check my videos on whole life policies, especially the ones in which I talk about cash value. Generally, whole life policies accrue a cash value, which is what you want from your policy!
Now, you should also ensure that you have your agent’s license number – they shouldn’t hesitate before giving it to you. They should also have a badge that has their full legal name, registered license number, and photo ID – I make sure to carry mine with me on all appointments.
If your agent does not have a badge, that’s a warning sign, so you might want to reconsider before investing in any insurance policy with them. Everyone on my team has to carry their badge with them— it has their Arizona license number that is approved by the Arizona Department of Insurance. So, make sure your agent has theirs with them.
If you have any such questions on life insurance, be sure to reach out to me and I will try my best to answer them for you in my videos.
If you are located in the Cottonwood, Sedona, Flagstaff or Prescott area and are looking for more information on affordable Life Insurance please don’t hesitate to contact us. Use the links below or call us directly at: (928) 323-0933.