There are many common questions that float around when it comes to life insurance. With all the options and details, it can be overwhelming and perhaps confusing. Life insurance is an important purchase and one that needs to be assessed for individual needs. All of your questions should be answered before you buy any policy in order to truly protect your loved ones in the event of a tragedy. The following are five common questions pertaining to life insurance, answered in simple terms.
1. Does it matter when I buy a life Insurance policy?
The answer is yes. It matters greatly when you buy your policy. Generally, the longer you wait to purchase a policy, the more you are likely to pay for your coverage. The reason behind this is because as you get older, your risk factors to an insurance company increases. Purchasing a policy when you are young and healthy, will provide you with lower premiums. It is true that a health crisis can happen at any age, so be proactive and purchase a plan before a life changing event potentially can happen. In the event of being diagnosed with a serious illness or potentially life-threatening condition, regardless of your age, it becomes much more difficult to obtain a life insurance policy. Buying coverage sooner will earn you more coverage for less money and also avoids the risk of being turned down due to health issues.
2. Can a smoker get life insurance?
Smokers can get a life insurance policy, but they will pay a higher price for the coverage. It is already well known the risk factors associated with smoking, and insurance companies consider smokers high risk candidates. Most life insurance companies consider you a non-smoker if you have quit for 12 months, which will qualify you for better rates after a year of being nicotine free.
3. What happens when a term policy expires?
A term life insurance policy comes to an end when it its expiration date arrives, this does not mean you are out of luck. They can be renewed or converted over to whole or universal policies as well. So you do not have to give up coverage when the policy technically expires. If this is the case, it is important to remember that since you have aged and your health may have changed since you initially took out the policy, your can not be guaranteed the same rate should you renew. Typically, a medical exam is required to qualify for a renewal. Consider a whole or universal policy if you want to avoid the risk of a rate increase but speak with your insurance professional to find the best option for you
4. Can I have more than one policy?
As long as you qualify, you can have multiple life insurance policies. Typically most people do not carry multiple policies, rather they increase their death benefit amount on the one they have. This makes carrying life insurance more affordable. In addition to a policy provided by an employer, some people choose to carry a private policy for added protection. Term life insurance policies are cheaper than whole or universal policies, so many people choose a term policy to have a larger amount of coverage when they need it most, and keep a smaller permanent policy to ensure always having some sort of coverage. Speaking to an insurance professional will help you determine what combination works best for you.
5. Do I have to pass a medical exam to get coverage?
This is not necessarily always the case. Some insurance companies offer no-exam policies in which you can qualify with a simple questionnaire, and some do not ask any questions at all. The offset to these policies is that you may have to pay a higher premium and receive a lower death benefit amount should you choose to go this route for coverage. If you are in good health you may want to do the exam to help you qualify for lower rates and a better policy.
Get no-obligation life insurance quotes today and get the coverage needed for you and your loved ones.