Ask these
before you sign.
This list is not a trap for salespeople. It is a way to have a better conversation, with anyone, including us. A professional who is confident in what they are selling will welcome every question here. One who is not will give you a reason to slow down.
Key takeaways
- Ask what the policy does, what it does not do, and what happens if your circumstances change.
- Request the answer in the contract, not just the presentation, 'where does it say that?' is a fair question.
- Understand the cost structure, including what happens if you stop paying.
- You are allowed to take the documents home and decide later. Anyone who pressures you to sign the same day is telling you something.
About the policy itself
- What exactly does this policy pay, and when? Ask for the death benefit amount and the conditions under which it is paid.
- What is not covered? Every contract has exclusions and limitations. A professional will tell you what they are without being pushed.
- Is the premium guaranteed to stay level? For term, usually yes for the term. For universal life, often not, the premium may need to increase if the policy underperforms. Get a direct answer.
- What happens when the term ends? What are your options, what will they cost, and are you guaranteed to be able to renew? Guaranteed renewability does not mean affordable renewability.
- Where in the contract does that appear? This is the single most useful question you can ask. Anything true about a policy should be traceable to contract language. If nobody can point to it, treat that as information.
About cost and structure
- How does this compare to a term policy of the same benefit? If the recommendation is a permanent product, you are entitled to see what the same money would buy as term. Not to force the comparison, but to understand what you are choosing between.
- How much of my premium goes to coverage versus other components? For permanent products, understand the structure of what you are paying for.
- What is the surrender charge schedule? If you need to stop, what do you get back, and for how many years does that penalty apply?
- What happens if I miss a payment or stop paying? Grace period length, what happens after, and whether the policy will lapse or remain in force at a reduced level.
- Am I paying for anything I already have? Employer disability coverage, existing coverage, and riders that overlap with other policies are worth mapping before you add another premium.
About the process
- Is the number you just quoted me a rate, or an estimate? Before underwriting, it is an estimate. Ask what could change it.
- How long will underwriting take, and what could delay it?
- What if I disclose a health condition, does that change the recommendation? This reveals whether your agent is shopping your actual case or working from an assumption.
- What happens if I am declined? The answer should include what other carriers might be receptive and how the case would be presented.
About the agent
- What is your licensing, and in which states? Insurance licensing is state by state and publicly verifiable.
- How are you compensated? Commission, fee, or a combination, and whether it varies by product. This is a legitimate question and there is a straightforward answer. How someone handles it is informative.
- Will you say so if this product is not right for me? The only useful version of this question is the one you can actually test, by noticing whether the person ever recommends less coverage, or a cheaper product, or nothing at all.
- Who services the policy after it is issued? Ask who you call in five years when something needs attention.
About your own situation
The questions above are for the agent. These are for you, and they matter at least as much.
- Can I comfortably keep paying this premium if my income drops for a year?
- Do I understand what this policy does in plain language, well enough to explain it to my spouse or partner?
- Have I written down what this coverage is meant to accomplish, so I can tell whether it still fits in five years?
- Am I buying this because it fits my situation, or because someone made me feel anxious about not having it?
The standard we hold ourselves to
We are licensed life insurance professionals, and that is the whole of our authority, we are not tax advisors, investment advisors, or fiduciaries, and we will not describe ourselves that way. What we will do is answer every question on this page directly, hand you documents rather than summaries, and tell you when we think you should not buy something.
If you are working with someone else and the conversation does not feel like this, you are allowed to bring the same questions to us. A free consultation costs you nothing but the time.
Questions this guide didn’t answer?
General guides cover general situations. A free consultation is where your specific circumstances get a specific answer.
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