insurance

10 questions for your life insurance agent

Does the policy provide living benefits?
Next
Slide 4 of 11
Previous
Does the policy provide living benefits?

You'll want to ask about the basics of the policy, including how long the policy will last, what your premiums will be, what the policy's rate of return is and how the death benefit works. If you're purchasing permanent insurance, you should also ask about what kinds of benefits the policy provides while you're living, says Kim D. H. Butler, author of "Live Your Life Insurance."

"You're basically looking for four things: control, liquidity, use and equity," she says.

Control means the policyholder is clear on who owns the policy, who's funding it, who gets to decide the beneficiaries and whether the policy stays open or closed, says Butler.

Liquidity means the policyholder is clear on how much money he or she can take out of the policy and how fast. "You can get the cash value of whole life insurance within seven days," she says.

As for use and equity, Butler says policyholders should thoroughly understand what money taken from their account can be used for and what the rules are on borrowing against it if you need to take a policy loan.


Next
Slide 4 of 11
Previous

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us

Compare multiple quotes in just 6 minutes

Get competing rates from top companies including:
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jay MacDonald

Fall maintenance for Obamacare

Submit Obamacare proof of income documents by Sept. 30, but beware of HealthCare.gov fall maintenance.  ... Read more

advertisement
Partner Center
advertisement

Connect with us