3 Common Questions About Life Insurance

Enrolling in a life insurance policy is a significant undertaking. There’s a lot that goes into your decision. From researching the various policy options – term life, whole life, variable and so on – to determining who your beneficiary will be, the life insurance process can become a bit overwhelming. That’s why we at Dagley Insurance and Financial Services, constantly strive to properly prepare our clients and educate them all of their coverage options.

Below you’ll find a list of the 3 most common life insurance questions:

1. Who is a Beneficiary?

The beneficiary of your life insurance policy is the person or party designated to receive the life insurance or annuity proceeds upon the death of the insured. The beneficiary is typically named when a policy is taken out and can always be changed at the request of the policyholder.

2. How are life insurance costs determined?

The cost of a life insurance policy is determined based on a variety of considerations. For one, mortality costs, or the costs associated with paying claims to the beneficiaries of insured people, is one aspect of a policy’s cost. Mortality costs have been steadily decreasing in recent years, due to the fact that people are living longer—this means a longer period of time in which premiums can be collected. Operations costs are also considered as well as the “return on investment” that the policy may offer the insurance company.

3. Will I have to be examined by a doctor to purchase life insurance?

Procedure varies from one insurance company to the next. It’s common, especially for new customers, to undergo a medical examine before enrolling in coverage, because it allows the company underwriters to properly assess and classify the level of risk and set the appropriate premium charge. Oftentimes, the exam will only involve basic medical tests and an overview of the applicant’s medical history; unless large amounts of insurance are being applied for.

Have further questions regarding your life insurance needs? Please don’t hesitate to contact Dagley Insurance and Financial Services, one of our life insurance specialists would be happy to help!

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