Choosing an Agent

Choosing a life insurance agent is an important step. Of course, you want to pick the best agent for your unique situation and one that is willing to handle all your questions, such as understanding your carrier's rating. Picking out a whole life insurance policy can be intimidating because there are just so many choices and different companies from which to choose. It may seem like they are all alike after you have looked at a few different companies, but in reality, each company has a different philosophy and style of dealing with clients.

Interviewing Insurance Agents

Above all, you need to be selective about choosing a life insurance agent. This agent will be the person you contact in the event your family needs to cash in the policy. Make sure you and your spouse feel comfortable interacting with the agent. A good insurance agent will be available to answer your questions quickly, whether through email or a telephone call. When you are interviewing prospective agents, keep a few key questions in mind.

Also ask the agent whether it is possible to change, add, or delete certain aspects of the policy if your lifestyle changes. Maybe you will have more children in your lifetime, which would probably trigger a higher premium for more coverage. The agent should be attentive and tell you their procedure for upgrading or downgrading insurance policies. While you are speaking with agents, get free quotes from them over the phone. Compare the rates and the agents together.

Insurance Pros and Cons

Ask the agent about the advantages and disadvantages of the policy you want to buy. The agent should help you choose the best plan that will benefit your family the most. Also ask the agent about possible exclusions that may keep your family from cashing in on the policy. It can be difficult to read a policy sheet that is filled with jargon, so don't be afraid to ask the agent to interpret a few things. Ask the prospective agent about policy renewals, and how they are handled. Term policies require renewal fees, but whole life insurance policies do not. Some insurance companies will require you to re-qualify for the insurance after a certain number of years.

Life Insurance Payment

Find out if they take the premium right from your bank account or if you have to write a check. This will help you be prepared for automatic withdrawals. While you are discussing premiums, find out the exact amount you will need to pay each month or year and work out a payment schedule. Some companies give policy holders a discount for paying the premium in one lump sum. Not all premiums are "fixed-rate," so find out if the amount will change in the future.

If your whole life insurance plan includes a cash value, ask the agent about the specific terms. Can you use the money, borrow against it, etc.? If you decide to terminate the insurance policy, will you get all your cash value back? Ask about any fees associated with the cash value. If there is something you want to add to your policy, make sure the agent puts it in writing with your policy sheet.

You should have no difficulty finding a permanent life insurance policy to meet your family's needs. Policies can be tailored to fit any budget and any family member, from child to senior. There are policies that allow you to pay the premium up front all at once and policies that need to be renewed often. You may have many questions about choosing your never ending life insurance policy, and these questions should be directed toward a life insurance agent.