5 Questions to ask a Life Insurance Company/Agent

When you’re thinking about purchasing any type of monumental life insurance, there are several questions that you sure make sure that you ask the life insurance company or agent that you’re thinking about getting a policy with. Think about the amount of money that you’ll be investing in a life insurance policy over all of the years, (usually decades!) so after paying so much money to get a service you want to be sure that your life insurance company can provide the service that they’re saying that they provide. So before you agree to a contract with an insurance company that deals with life insurance, ensure that you’ve asked them most of these questions:

What’s the financial rating of the company? – The reason why you want a monumental life insurance policy is so that your family is looked after once you pass away among other reasons, isn’t it? So you need to be sure that the company that you’re dealing with has a good financial rating so that you know they can pay out on time if you were to pass away. There’s nothing worse than a family having to spend a countless amount of hours chasing an insurance company in order to get the money which they are entitled to!

What types of monumental life insurance do you offer? – Some companies offer nearly every type of policy that’s available while other companies specialise in certain policies. So ask the company what type of monumental life insurance policies do they deal with so you can decide which type of policy is best for you. Each and every person is different, so while one policy might be perfect for one of your friends, it could be terrible for your particular needs so spend a lot of time thinking this through.

How can a claim be made? – Once again, all life insurance companies have different procedures to follow when people need to make a claim on their policy. For example, one monumental life insurance company might ask for you to make a claim within a couple of weeks while others may give you months or even years to make a claim. As well as this, try to find out how long they usually take to make a decision on a claim as well as the usually time that they actually make the payment. As the saying goes, “time is money” so the faster they deal with your claim, the better!

Are you and the company licensed here? – Even if you are 99% sure that the person that you’re dealing with is licensed to sell life insurance in your state, you should still enquire about it so that you’re absolutely positive. Don’t take any unnecessary risks, especially when there is a lot of money at stake. You can easily find out from your state insurance department whether a particular monumental life insurance agent or company is licensed in your state.

What happens in the case of an “Act of God”? – The whole point of life insurance is to financially cover your family in the case of you passing away. However, nearly all policies have what’s known as an “Act of God” exclusion. This means that if you pass away due to what the life insurance company considers as an “Act of God” they don’t have to pay out. What does this actually mean to you though? Well, let’s say that you got killed due to a tornado or a hurricane – your family wouldn’t receive anything at all! Even though the chances of this happening is extremely low, it’s still better to have a life insurance policy that does still come in to effect if this were to happen to you.