Five Questions to Ask Before Choosing Life Insurance

Five Questions to Ask Before Choosing Life Insurance

It can be very personal to shop for life insurance. Your family is what you want to protect. Robert Bland, founder and chairman of Life Quotes, Inc., a GEICO Partner, asked us five questions about life insurance before you make one of the most important purchases in your life. Keep reading for life insurance tips and questions you should ask.

Are there dependents or debt? Who should I name my beneficiary?

Without you, what would happen to your family? Financial security is something you should consider. Income replacement is one reason why life insurance is so popular. “Life insurance can be a great way to provide for loved ones and create an estate. A beneficiary of your life insurance policy is the person you choose to receive your policy’s death benefit. This is most often a spouse or a child.

What coverage do you need?

It can be difficult to determine how much life insurance you need. The industry standard is 10 times your annual salary, but this can change depending on your individual circumstances. How would your family survive if you lost your income? Think about how much money you would need to replace your income every year for the next 20-30 years.

You should also consider other large outstanding debts, such as your mortgage. You’ll need to increase your coverage accordingly. It’s a smart idea to have enough life insurance in place to cover your debts like your mortgage. Then, add some coverage that will leave your family with a nest egg.

Which term should I choose?

Term life insurance is flexible and affordable. This makes it easier and less daunting. Term life insurance offers straightforward death benefit protection with no investment or cash value add-ons. Talk to an agent about your income requirements and they will help you determine the best policy terms and limits for your needs.

What is my medical history?

Although you may appear fit and healthy, your medical records will be required for the initial assessment. “Get all of your facts together because you’ll be asked about them.” Do not be discouraged; a standard term policy will usually cover death from any cause, with the exception of suicide within the first two policy year (in some states, one year).

How can I get the best price for my product?

The GEICO Insurance Agency allows you to instantly compare multiple quotes for life insurance. You can instantly compare multiple quotes on life insurance through the GEICO Insurance Agency.

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