Making a Plan for Life Insurance Peace of Mind Part 2
written by Credit-HQ ExpertBe Ready for the Questions They Will Ask You!
When you are applying for a life insurance policy, they will want to know how healthy you are. So they may ask you to take a physical to qualify for the insurance. They might also ask some pretty personal questions about how much you drink, smoke and how your diet and stress levels might influence your life expectancy. If you like to swim with sharks for a hobby, they will want to know that. If you want to “cram” for your life insurance preparation, a good place to do that is – http://www.accuquote.com/exam.cfm
A Safety Check: Is Your Insurance Company Reliable?
If your insurance company fails, looking for new life insurance could be tough and expensive. That is why it’s good to use some industry watchdogs to keep your eyes on how each company is doing. Some free sources are…
- Standard & Poor’s -212-438-2400 – http://www.standardandpoors.com/
- A.M. Best – 908-439-2200 – http://www.ambest.com/
- Moody’s – 212-553-0377 – http://www.moodys.com/
Now each of these services rate insurance companies a different way. So be sure you know what their ratings mean so you can use the information they give you. It is also smart to keep up on how well your insurance company is doing every so often. If you see your insurance company declining financially, you may need to look for a new provider before they go under.
Common Questions to Consider
Whether or not to buy insurance for your children is a decision you will have to make. The rates for a small insurance policy on a child are very low. But you really only need enough life insurance to cover funeral expenses if the child passes away. Unless the child has real financial value to the family, no further insurance is needed.
Mortgage companies also offer what they call “Mortgage Protection Insurance” which is designed to pay off what you owe on the house if the primary breadwinner dies. The problem is that this kind of insurance decreases in value as you pay off your home but the premiums don’t go down. That is a nice deal for the insurance company. So it’s smarter to just take out enough standard insurance to pay off the house and provide for the family and then leave how the money is used to the surviving spouse and other family members. Any specialty life insurance could just as easily be replaced with a standard package like this.
You are smart to keep learning about life insurance because it is a big part of your financial planning. Here are some additional sources to continue your learning…
- What You Should Know About Buying Life Insurance is a great book for you to use to sort out what kind of life insurance is best fro you. It is published by the American Council of Life Insurance and the U.S. Office of Consumer Affairs. http://www.pueblo.gsa.gov/acli/buying_insur.pdf
Also, spend a little on the web site for the Insurance Information Institute. It is a great way to stay informed about life insurance issues. http://www.iii.org/
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