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What to expect when speaking to a licensed insurance agent

When purchasing life insurance, a licensed insurance agent can help guide you through the process. But what should you expect from this interaction, and how should you prepare for the conversation? Read through our tips below.

1. Compile a list of the questions you'd like answered

A licensed agent can help you evaluate your life insurance needs and compare policies. But before speaking to an agent, think about the questions you have regarding your life insurance options and what you should know before purchasing a policy.

Some important questions you may want answered include:

What type of life insurance policy do I need?

There are two main types of life insurance: permanent life insurance and term life insurance.

  • Permanent life insurance never expires (as long as the premiums are paid on time and in full)
  • Term life insurance is valid for a predetermined amount of time (usually five to 30 years). This means that if the policyholder outlives the term of the policy, a payout will not be made to his or her beneficiaries.

There are pros and cons to both types, and the right type of policy for one person may not be the best option for another. A licensed insurance agent can explain the difference between these types of policies and help you decide which is right for you.

How much coverage should I buy?

How much life insurance coverage you need can vary and depends on your unique situation. But keep in mind that if you have dependents, there is even more to take into account, such as future education costs and day-to-day living expenses.

And some people only need a life insurance policy to help cover end-of-life costs, such as medical expenses and funeral costs. A licensed agent can help evaluate your specific needs and match you with a policy that is right for you.

How much will I likely pay for a policy?

The amount you pay for a life insurance policy will depend on numerous factors, including the type of life insurance policy you purchase and the term length (if purchasing a term life policy). Your age, health and medical history can also influence your rates.

Is a medical exam required?

Some life insurance policies require you to pass a physical examination to obtain coverage, and the results of your exam may also influence your rates. Other policies (such as guaranteed issue policies) do not require you to pass a medical exam, but usually have higher premiums per dollar of coverage. A licensed agent can provide more insight into this, based on the type of policy you are interested in purchasing.

2. Get a personalized quote

Once an agent answers your life insurance questions, your next step is to get a personalized quote. To provide you with an accurate quote, the agent may collect more information about the following:

Your age
The younger you are, the less you’ll typically pay for life insurance, because you pose less of a risk to the insurance company. Providing your age to a licensed insurance agent will ensure you are getting an accurate quote.

Your gender
Women typically pay less for life insurance than men because they have a longer life expectancy, so an agent will take your gender into consideration when providing you with a quote.

Your annual income
Providing your annual income gives the insurance agent a better idea of how much life insurance you’ll need. The larger the insurance policy, the more expensive it is.

When thinking about your life insurance needs and your annual income, consider how many years your family will need to rely on your income if you were to die. You may also think about how many children you plan to pay college expenses for and include this in your calculation.

It is also helpful to think about how much debt you owe, including your mortgage, student loans, auto loans and credit card debt. Your loved ones can use the death benefit from your insurance policy to pay off these debts so that they are not burdened with the costs.

An agent may ask about your current assets, including any other life insurance policies you have (through your employer or personal accounts), retirement funds, mutual funds, savings accounts, CDs, stocks and bonds.

If you plan to leave a sum of money as a gift to family, friends, businesses or charities, you’ll want to factor this into your life insurance policy amount.

Final expenses
A life insurance policy can be used to pay off your end-of-life expenses, such as medical bills, funeral expenses and burial costs. If you plan for your life insurance policy to cover your final expenses, these costs should be considered when determining your quote.

Once the agent has collected this information, you can review your personalized quote together. An agent can help you select policy features that works for your coverage needs and budget.

Note: Our quotes are provided without any cost or obligation.

3. Apply for a policy

The final step in the process is to apply for a life insurance policy. If you want to purchase a policy that one of our licensed insurance agents quoted you, you may be able to start the application process right away. Since you just provided your personal details for the quote, our agents may only need a few additional details from you, such as your preferred payment method.

If you are ready to get started, you can speak with a licensed agent at 1-855-303-4640.

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