Choosing a Policy

Updated July 10, 2020 | Infoplease Staff

Your agent's role is to find a policy that is right for you. Be prepared to discuss your financial situation, personal goals, family background, and health. You may have to take a physical exam. Tell the truth. Lying on your application could result in a denial of benefits for your survivors.

The agent should be able to explain various insurance policies. Get a step-by-step explanation. Many companies offer buyer's guides. Consider:

  • When does the policy take effect?
  • Can you afford the premiums?
  • Will the premiums increase?
  • What happens if you fail to pay a premium?
  • What amounts in the policy are guaranteed?
  • Will death benefits be affected by interest rates or other factors?
  • Does the policy pay dividends?
  • What provisions in the policy could change?
  • Will you be notified if there are changes?

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