#1: What Type of Life Insurance Is Best for Me?
#2: What Is Guaranteed?
Permanent insurance (sometimes called whole life insurance) promises a payout at the time of death. However, you need to verify how much is guaranteed. Some policies focus on projections of worth based on the underlying investments. You also need to consider the amount that will pay out, no matter the changes in the market throughout your lifetime.
#3: What Type of Returns Can You Expect?
For the first few years that you own a permanent life insurance policy, most of your premiums go to funding the policy, with little being invested. You need to find out what expectations you should have for your returns within five to ten years. There are few promises, of course, but you should have an idea of what others are earning.
#4: What Happens If You Become Disabled?
Some life insurance policies include a disability rider, or, alternatively, you can purchase a disability insurance policy separately from your life insurance policy. If you become disabled while the policy is in place, you should find out what options exist for you. Some policies offer a waiver of your premium if you are deemed disabled. This allows the policy to remain in place even if you can’t make the payment. You should also clarify what the insurer considers disabled – this can differ from carrier to carrier.
#5: What Happens as You Get Older?
If you purchase a term life insurance policy, you’re likely to have options to renew and extend the policy throughout your life, usually up to age 90. However, the costs rise quickly each time. Whole life insurance policies may allow you to lock in a lower cost for a longer period of time.