What are the questions you asked when purchasing life insurance?

What are the questions you asked when purchasing life insurance?

We had a neighbor several years back who would quietly urge us to purchase life insurance policies. We were young and had just bought our first house so his suggestion fell on deaf ears. We just weren’t considering the end of our life we felt like our life was just beginning. Fast forward a decade and while we’re still young at heart there is room in our minds for considering eventualities.

 

Now that I'm preparing for the (hopefully distant) future I want to be responsible for planning for my family. So, based on everything I have read so far, I'm making a list of the questions I have to work through when it comes to life insurance. The more I dig into the subject the deeper it seems to go! I'm not sure if just going through a website sign-up process will give me the information I need to make a decision. Thought I would share my list so far with the group, let me know if you have more questions YOU would add to this list in order to make an informed decision.

 

  • How do you find the right life insurance policy?
  • What are the different types of life insurance? 
  • How do I make sense if term life insurance is better for me if I plan on living much longer than the term?
  • How much life insurance is enough for my family?
  • What about the life insurance through my employer? Do I count that into the amount of insurance I purchase?
4 REPLIES 4

Re: What are the questions you asked when purchasing life insurance?

What a great question @Reeta. My husband and I just bought a house and that prompted us to review our life insurance policies in case one of us passes, the other has to have the means to cover the mortgage. So we found that my husband's 20 year term policy is expiring in no more than 7 years at which time his premiums will go up from $75 to $450 a month.... Well we nipped that in the bud and bought a new policy. He has the options to start a new 20 year term policy at $97 a month (no bells or whistles on this one). We ended up choosing a slightly more expensive policy with Transamerica ($117 a month) because they had an option to add a critical, chronic and terminal illness " add on" in case my husband gets sick during those 20 years. In that case (based on the medical condition he is in) some of the value of the insurance policy will pay out ahead of his death.  This was important to us because my husband is not very young anymore and it is a real chance that he may develop some chronic illnesses in the next 20 years.

 

 

I am happy to admit that my 20 year policy is only 2 years in and I pay $230/ year. Best piece of mind I could buy for that little money.

 

Note: this is my personal story and of course costs will be different for everyone. But it just shows how many differences there are with insurance policies and the cheapest is not always the best. It sure was not for us.

Re: What are the questions you asked when purchasing life insurance?

Hi @Reeta , @AndyB wrote a piece about life insurance that you might find helpful '3 Key Tips for Talking About Life Insurance'. It's pretty high level, but you mentioned you were reading up on the topic so I thought I would share. Smiley Happy


------------------
Janice James - W+H Community Manager
Get started in the community.

My goal is to connect people who share a passion for staying well and building wealth to ensure healthy, comfortable futures. Let me know how I can help!

Re: What are the questions you asked when purchasing life insurance?

Hi, @Reeta 

To piggyback on Janice's post ... here's another article that's pretty cool What's the Meaning of Life ... Insurance It includes questions to ask and things to consider to get closer to figuring out what might work for you

Re: What are the questions you asked when purchasing life insurance?

that is a good question to ask about things that you don't know nor understand.  there are a lot of questions we need to know when you are looking for insurance it can be very difficult to understand some of the information.  so we have to be careful and not be mislead