You’ve reached a point in your life where you know if you want your loved ones to be taken care of once you’re gone, you need to look into procuring a life insurance policy. The fact is, most people don’t know a whole lot about life insurance and have tons of questions that they don’t get around to asking or sometimes are afraid to because, let’s face it, the thought of dying is something no one wants to think about.
Right up there with just not wanting to think about dying is the fear of being ripped off when you finally do break down and start looking for a solid life insurance policy. Dying is something everyone has to do and you can prevent being ripped off by doing your research and asking the right questions. That’s why in this blog, you can find a few of the top life insurance questions out there and the answers as well.
Is Life Insurance Taxable?
One common question asked by many is, is life insurance taxable? The answer is that even though nothing in life is certain, except death and taxes, somehow most death benefits escape taxes due to laws put in place to protect the deceased’s loved ones. As with anything else, there are instances where death benefits could be taxed. It’s best if you talk to your insurance agent when you’re considering which policy is best for you to determine what those instances are and if they apply to you.
What Do Life Insurance Companies Test For?
If you decide to purchase a life insurance policy, the company will want you to go through a battery of tests. This is basically a physical to determine the health you’re in and any risk factors the insurance company needs to know about. You can usually have the physical done at home, work, or a doctor’s office. Your vitals will be checked for sure and sometimes a urine sample and an EKG may be asked for as well.
Does Getting Estimates for Life Insurance Cost You Anything?
The answer to this question is a firm no. No matter how many insurance companies you talk to or how many estimates you get, you should never be charged for them. The only thing you should be charged for is the policy itself if you choose to go with that company. If an insurance company tries to charge you for talking to them about a life insurance policy, scratch them off your list and move on to someone more reputable.
Broker or Independent Agent?
Another question that comes up often is whether it’s best to go with a broker or an independent agent for your life insurance needs. When applying for coverage, many say it’s best to work with an independent agent over a broker because indies have the ability to get quotes from many different companies. A broker works at a specific company and is limited in the quotes and rates they can get you, resulting in you possibly not getting the best rates or lowest price. The choice, of course, is up to you to determine which is best for your specific case. Take your time, do your research and talk to both brokers and independent agents before making a final decision.
These are just a few of the questions that you need answers to when you finally come to the decision that you need life insurance. Finding the answers to these questions will help you choose the policy that works best for you and the loved ones you leave behind.