20 Life Insurance Questions to Ask Before Buying a Policy
Updated: Sep 22
20 Questions to Ask Before Buying Life Insurance
Use this practical life insurance checklist to compare policies, understand premiums, review beneficiaries and avoid common mistakes.
Life Insurance Questions to Ask Before Buying
Life insurance is a significant financial decision. Before purchasing coverage, it helps to ask questions instead of focusing only on the monthly premium.
Here are 20 questions worth asking.
1. Why am I buying life insurance?
Identify the financial purpose first.
2. Who depends on my income?
Consider spouses, children, family members or business partners.
3. How much coverage do I need?
Consider income, debts, housing, education and other financial responsibilities.
4. How long do I need coverage?
A temporary financial obligation may require a different type of coverage than a lifelong financial objective.
5. Should I consider term insurance?
Ask whether temporary protection addresses your financial need.
6. Should I consider permanent insurance?
If lifelong protection is important, ask about permanent coverage options.
7. What will my premium be?
Ask about the current premium and whether it can change.
8. How long is the policy designed to last?
Understand the duration of coverage.
9. What happens if I outlive the term?
Ask whether renewal or conversion options exist.
10. Is a medical exam required?
Find out what underwriting information will be needed.
11. What health information will I need to provide?
Be prepared to answer health questions accurately.
12. Who should my beneficiaries be?
Consider primary and contingent beneficiaries.
13. Can I change my beneficiaries later?
Ask whether the designation is revocable and what procedures apply.
14. What exclusions apply?
Read the policy contract carefully.
15. Is there a waiting or graded-benefit period?
This can be especially important for certain simplified or guaranteed-issue products.
16. Does the policy build cash value?
If considering permanent coverage, understand how the cash-value component works.
17. Can I borrow against the policy?
If applicable, ask about policy loans, interest and potential effects on the policy.
18. What happens if I stop paying premiums?
Ask whether the policy has a grace period, nonforfeiture provisions or other options.
19. What happens if I replace an existing policy?
Understand the consequences before canceling current coverage.
20. Who can help me understand my options?
A licensed insurance professional can help explain available products, while the insurance company can provide the actual policy contract and product-specific information.
Why These Questions Matter
A low premium doesn't necessarily mean a policy is appropriate for a particular financial need. Likewise, a larger policy isn't automatically necessary. The goal is to understand the relationship between:
Coverage + Cost + Duration + Policy Features + Financial Need
How JRF Services Can Help
JRF Services is an independent insurance brokerage that provides consumers with access to insurance options from multiple carriers. The JRF Services website provides online life insurance options as well as the ability to schedule a call for personalized assistance. Consumers can use the online process for convenience or request assistance when they have questions about their options.
Final Thought
The most important question isn't simply:
"How much does life insurance cost?"
A better starting point is: "What financial problem do I want this policy to solve?"
Once that question is answered, it becomes easier to evaluate the type, amount and duration of coverage that may fit your circumstances.
Important: Life insurance products, eligibility, premiums, underwriting requirements, benefits, exclusions and availability vary by carrier and state, the insurance policy and applicable state law control.
Comments