Getting A Whole Life Insurance Quote - What To Ask
The best way to get an accurate whole life insurance quote is to do plenty of research and ask lots of questions. The more complicated the policy, the more questions you will need to ask. If you begin to feel confused it may be very helpful to talk with an agent face to face.
Once you've done a bit of research on whole life insurance, you will know that the policy premium covers various aspects. You need to clarify what your whole life insurance quote means - what part of the premium covers the life insurance itself, what part covers any sales commissions and administrative fees and what part goes toward creating cash value. You should ask how much of your premium each year will be directed to each of these various parts. You should also clarify the tax status of any tax-deferred cash value.
The next questions relate to any penalties. You want to know how much a penalty may be and also if there's a time frame related to penalties. For example, some policies include a penalty if you cash in within the early years.
Be sure you understand clearly what is guaranteed in the policy and what's not. Are there any exclusions that would mean the death benefit is not paid to your beneficiaries? Look for references to suicide or war, for example, and be sure to read all the fine print. Yes, it is tedious reading but you need to know what's in there – especially anything that may contradict your understanding of the policy benefits. Are you clear on what your policy's cash value will be? How fast will it grow? Do you understand how the interest rates are calculated and paid? If you choose to pay premiums monthly instead of annually, will you pay more? What is the monthly or annual cost of the policy you are considering? Are you sure you will continue to be able to meet those premium costs in the years ahead? What will happen if you miss a premium payment? Review in your mind why you have decided to get whole life insurance instead of term life insurance. Are you certain you want long term insurance? Now that you have clarified all these details, you should get at least three quotes from three different companies. In order to do this you can use different agents or a single agent who represents multiple companies or you can do some online research. Ask for or research "no-load" and "low-load" insurers. These will have the lowest sales commission. If you have significant risk factors it is best to look for a company that specializes in people like yourself. Smokers or people who engage in high risk hobbies, for example, may find this leads to better rates. Remember, you're going to have this policy for the rest of your life (unless you stop paying the premiums). It's worth taking the time to make sure you get it right!
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