Choosing a Policy
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?