For many people, making sure that their loved ones will be secure and taken care of in the event of their passing is a huge concern that requires a great deal of attention. However, making sure that you have sufficient coverage can be a difficult proposition, and many people are unfamiliar with the steps they need to take to make sure they've correctly invested.
Below, you'll find a guide to some questions you should be sure to ask your life insurance agent. Having the answers to these questions will put you in a position to increase your security and decrease your anxiety, guaranteeing that your relationship with your life insurance broker is as productive and successful as possible.
Ask About Living Benefits
While most life insurance policies are designed to provide stability in the event of your death, they can also prove to be a valuable asset while you're alive. When you invest in a life insurance policy, your confidence in doing so may increase if you know that you can withdraw some funds if necessary.
Asking your life insurance agent about living benefits can provide you with a variety of options that can increase your liquidity. Whether those benefits come in the form of borrowing against your policy or simply cashing out a percentage of it, you won't have to worry about your funds being unavailable if an emergency were to occur.
Ask About Health Changes
For most life insurance policies, you'll be required to submit a physical examination when the policy is purchased. This is necessary to protect the interests of the insurance company and guarantee that you're not high risk, but if your health changes, you may be uncertain about what happens next.
Your life insurance agent will be able to walk you through your obligations in the event of injury, disease, or other serious health development. Having a plan of action ahead of time will help mitigate the stress that could come with those serious life changes.
Ask About Inflation
It's important that the money you invest in your life insurance policy holds its value for when the date of cash out arrives. Unfortunately, the rate of inflation may make that difficult to maintain. If you ask your insurance agent about this concern, he or she may be able to provide you with inflation protection. Often, the small addition to your premium that this protection requires is well worth the value that you'll be retaining on the backend.
For further assistance, contact a local insurance agent, such as one from Colling Insurance Services, Inc.