The Questions to Ask Your Insurance Provider

There is no shortage of insurance companies providing life insurance policies in Texas, so you have your work cut out when you attempt to choose a suitable policy. Numerous factors need to be considered when choosing the right policy for your family including the choice between whole and term life insurance, annual costs of the insurance, and protection from financial difficulties.

The life insurance agents in Texas should be able to answer your questions. If you are looking to take out one or more policies, the insurance provider should clarify the key issues. Before settling on an insurance agent in Texas, you should ask the following questions:

• What will be covered by the premium and the expenses at the time of claim?
• How much insurance should you take out based on anticipated future expenditures? (The agent should help you calculate this amount )
• What are the costs involved and can any of them be excluded?
• Can you cancel the plan at will and if not, what are the conditions for this?
• How is your (the insurer’s) policy better than similar ones offered by other insurance providers?
• How flexible is the policy and how fluidly can you shift to another one?
• What are the financial ratings of the insurance company and how reliable is it?
• What special benefits are offered under children’s policies to maximize protection? Will the proceeds of the policy on a claim be paid in a lump sum or as part of an annuity?
• Which type of policy should be taken out: term or life insurance? (The agent should detail the pros and cons of both)
• How do you account for life expectancy when evaluating a term policy?
• How to account for cash build up and compare it with the higher cost associated with a whole life policy?
• When taking a whole life policy, will the premium begin to rise after a specified period?

From 1940 to the 1970s, people preferred taking out whole life insurance. Since the Tax Equity and Fiscal Responsibility Act (TEFRA) came into force in 1981, many insurers and banks offering insurance services became sensitive about the interest rates.

Life Insurance Agents that Offer the Most Useful Guidance

As people become more inclined to invest in the market and get a return at a rate higher than 10-12 percent, it has become important to consider the rate at which insurance premiums are charged. Whole life stays level whereas universal life and modified whole life and term can rise if they are not guaranteed by contract. By asking your insurance provider, you can better learn about all your options.