Did you know that less than 1/3 of Canadian residents say they don't have adequate life insurance coverage?
If you're among them, then we know you're curious about how to find a policy that works for you and your needs.
However, what's just as important to consider?
The life insurance questions you should use to help you decide on a qualified agent. Doing this will not only help you to ensure that you and the agent are a good fit for one another. It will also help you to familiarize yourself with the possible policies they can offer you.
Read on to understand the top questions about life insurance you should ask when interviewing agents.
1. What Are Your Qualifications?
The first thing you need to clear up when determining the right questions to ask about life insurance?
The experience, licensing, and overall qualifications of the life insurance agent themselves.
First of all, remember that any agent you work with should have a professional certification. This can be a Certified Financial Planner, a Chartered Life Underwriter, or even a Chartered Financial Consultant.
This is much more important than working with a life insurance agent that's a representative of a singular company.
If possible, try to get in touch with a few of their references. Ask if they're happy with the policies provided and if they'd work with this agent again in the future.
2. What Policy Do You Recommend and Why?
Next, ask your insurance agent what kind of policy they feel is a good fit for you.
In most cases, you'll get an offer for either term or permanent life insurance.
Term life insurance only lasts for a certain number of years, or until you reach a set age. If you outlive the policy, you don't receive any kind of a death benefit.
Permanent life insurance will cover you for as long as you live. You'll pay a premium on the policy, usually each month.
Additionally, study up on the specific insurance company that will provide you with your life insurance policy. What's their history like? Do they have good ratings and credentials? What is their overall fiscal rating?
You want to be certain that you're in the best possible hands when it comes to both your individual broker and the policy provider.
Make sure that you also take the time to ask about the guarantees associated with your policy. Remember, projections are not guarantees. Ensure that you're comfortable with the worst case scenario.
Make sure you also know whether or not the policy is adjusted for inflation. This is especially essential if you're going for a policy with a long or even whole life term.
3. What Will My Payments Look Like?
Of course, your insurance questions should also help you to better understand the cost of the policy.
Ask about the agent's commission. This will help you to determine if you're getting recommendations that are right for you, or if they're really a better fit for your potential agent's wallet.
Ask how they'll determine how much insurance you need, and how they'll calculate your premium payments.
Remember that your need is calculated depending on your current level of debt, as well as what it takes for those you leave behind to maintain their lifestyle.
You also need to understand if your payments will drastically increase if your health suddenly declines. What will be covered if the worst happens, and you become disabled and unable to work?
You should also ask about how your age will impact your payments. Additionally, will your payments be in the same amount of money every month? Or, will they fluctuate according to the overall policy value?
Finally, understand any monetary penalties imposed for late payments.
Your life insurance questions need to allow you to get a complete picture of the fiscal responsibilities associated with your potential policies.
4. Will I Need to Undergo a Medical Exam?
The final entry on our list of the life insurance application questions you need to ask?
Whether or not you'll be required to undergo a medical examination in order to get approval for a specific policy. While not all policies require an exam, if you're applying for term life insurance, there's a good chance you'll need to take one.
This helps to insurance company decide how likely you are to pass away before the term ends (meaning the likelihood that they'll have to pay the policy.)
The results of your medical examination will also impact the amount of your premium. The healthier you are, the lower your premiums will likely be.
However, be aware that many permanent insurance policies won't require a medical exam. They may be a bit more expensive, but if you're not in the best health, this may be your best option.
Ask These Life Insurance Questions Before You Make a Decision
We hope that this post has helped you to understand the life insurance questions you absolutely need to ask your potential agent.
Remember to understand the fee structure associated with the policy, as well as how the agent worked to determine your needs.
Ask if you'll be able to convert the policy from term to permanent, about the death benefit amount, and even what happens if your health changes.
Looking for more advice about how to pick the right insurance policy in Canada? Check out our blog to access reviews of some of the most popular policies.
Then, reach out to us to get a quote now.