The hiring of life insurance by parents with small children is a way of guaranteeing the children’s quality of life, in case the parents are no more. And if you have already reached this conclusion, but still have some doubts about this type of insurance and what you should ask your life insurance agent, then continue reading this article. We are going to show you the 5 things you should ask the insurance broker before signing the life insurance contract. Follow up!
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Table of Contents
When is the time to purchase life insurance?
The right time to take out life insurance is as early as possible. This is because the sooner the contract is signed, the lower the risk factor for the insurer and, probably, the lower the insurance value. That means it will weigh less in your pocket.
In addition, if you already have small children or if you have parents or other dependents, the ideal way is to look for a posp agent to start analyzing the contract. Only in this way you willguarantee them a dignified life in the event of a fatality.
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How much does life insurance cost?
This will depend on numerous factors since the insurance is calculated according to the profile of the contractor and the coverage contracted. In this sense, the value of the insurance will depend on your age, your health history, lifestyle, among others. However, it is possible to find affordable plans within your means.
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Can one change beneficiaries?
This is also a good question to ask yourlife insurance agent.Yes, you may change the beneficiary at any time. Suppose you have taken out a life insurance policy where the beneficiaries are your parents, but unfortunately, they pass away. Ideally, you will change who will be awarded the compensation. To do so, simply fill out a form and hand it over to your insurer. A good insurance agent will know how to proceed.
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What happens if I don’t nominate the beneficiaries?
If the contractor for some reason does not indicate the beneficiaries of his insurance, the premium will be given to the spouse and descendants of the insured. In this case, it will be half to the spouse and the other half equally divided among the heirs.
But if the contractor does not have a spouse, only the descendants will benefit from the premium divided into equal parts. If the contractor is single, the compensation goes to his parents.
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Is there a shortage of life insurance?
As a rule, the insurance company imposes a grace period of 24 months from taking out the suicide insurance. In this case, if the contractor commits suicide within this 24-month period, the insurance company returns the amounts paid to the beneficiaries, minus taxes and fees. After this period, there is no more grace period.
It is common to have a grace period for a natural death or for other situations, but it is not the rule. The rule is only for the case of suicide.For the avoidance of doubt, the ideal is to read the insurance contract andtalk to your broker.
In any case, there is an understanding that in order to cancel the insurance due to default, the contracting party must be previously notified to be constituted in default. Ready! Now you know what questions to ask the agent before closing the deal. Buying life insurance is not as difficult as it sounds. But, the idea is to have an insurance agent to guide you. There are many agents who have just become life insurance agents, so ensure you find the right one to handle your case.
