My husband and I are fixing to be checking into life insurance policies. What kinds of questions are they?

going to be asking us? How much should we expect to pay? He is 35 and I am 39. I quit smoking 1 year and 8 months ago. I have heard that it was best to wait until you had quit smoking for at least a year before checking into a policy. Is this true? Is there a company we should check with before checking with any others? Thanks.
Additional Details
umm, ok, I have two answers so far with two opposite suggestions!! help!!

Honestly, the younger you are when you purchase Life Insurance, the better it is. They will ask typical health questions about yourself and some about your parents and siblings. Quitting smoking is a great thing; most Insurance companies prefer you quit for 1 full year before they will give you non-smoker prices.

What type of insurance you need depends on how much you can spend and your needs.

Here are two main options:

1. Term 20 Insurance is a protection against what might happen in the next 20 years. Or a great replacement instead of Mortgage Insurance.
And the most important feature for you is to find out if it is CONVERTIBLE. This feature gives you options to convert or change it to a permanent policy in the future, because you may incur debt; you may get married; you may have kids. So what if none of this happens for 5 or 10 years? And when it does, you apply for Insurance and suddenly, you are uninsurable? How will you protect your family's lifestyle then?

2. An alternative is to spend a little more, and buy an Universal Life Insurance Policy. This is what I call "Insurance for Bullet-Proof People". You know the ones who say they will never die, or it couldn't happen to them? This is their Insurance. If you die, You're family is taken care of; if you don't die, you could be taken care of with a Tax Free Source of Income. Let me explain.

Your premium would be higher than a Term Policy, but you would have an Investment Portion of your premium growing Tax-Deferred inside your Insurance Policy. Then, when you want to retire, take your policy to a Bank and get a loan for up to 90% of the cash inside. You use the Cash inside as collateral, and now the Loan is a Tax Free Source of Income for Retirement in combination with things like a pension and RRSP's.

I do this every day for my clients...

Make sure you see a broker who can quote and tell you about a lot of insurance companies.
You should be OK as a non-smoker. You can get rates as a smoker, but it will cost a lot more.
If you are still smoking, I recommend getting a term policy until you have quit for at least one year then shop again to see about getting a better rate.
As far as what type of policy you should get, it really depends. Saying only term is good is very short sighted and frankly bad advice. I sell mostly term. I agree it's usually a good idea. However, someone who says it's the only way to go for everyone, really doesn't know much about life insurance and finance. There are companies out there who train their agent that it's the only way to go. I can't mention the name of one of the companies, but I warn you to stay away from anyone who says you have to get term before getting all the information on your situation.
"Buy Term and Invest the Rest" can be a good strategy, but if it's the first thing that comes out of their mouth RUN don't walk away.

Good Fortune!

Darrell

I'm glad you stopped smoking - Good for you! That will definitely help you get lower rates on your life insurance policy.

Some companies charge 2-3 times higher rates for smokers.

The types of questions that will be asked will be about your age, gender, amount of coverage you need, type of life insurance, your health, use of tobacco or drugs, if you are on medication, your family's health history, your job, your hobbies, etc.

They use these answers to find out what health you are in, what types of risk are involved with your job and hobbies, and what your life expectancy may be.

If you only need life insurance for 10, 20 or 30 years, you may want to consider Level Term Life Insurance because it offers the maximum coverage at the most affordable rates for young people.

You can compare free, instant quotes online from a quality quote provider at https://www.efinancial.com/smartquoteefc.aspx?source=389-707-1

You can get quotes for you and your husband. You fill out one form and they give you up to 12 quotes instantly from top-rated insurers. When you compare several quotes you may save up to 50% or more because rates vary between insurers.

Here is an explanation of how term life insurance works:

How It Works:

Term life insurance lasts for a specific number of years, usually 10, 15, 20 or 30 years. The most common terms are 10 years or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life insurance costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.

Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

I hope that helps! Best of luck to you.

Fixin to?? Well as long as you're fixin to..

Check with the company that writes your home & auto or check with a local agent who specialises in life insurance and can quote several companies for a best fit.

The term vs whole life debate has been going on for a while:
http://www.insuranceyak.com/ten-most-asked-questions-term-vs-whole-life/

Whatever you decide, follow through with it. People spend too much time deciding and not enought time doing. Good luck.

The agent will probably try to sell you whole life, because you pay for it your whole life, and he profits from it his whole life, as long as you continue to pay every year.
Look into level term, 20-30 years out, as it is so inexpensive, and even though it does not pay you that whopping 3% dividend the agent will tell you about that whole life does, it can cost up to 90% less than whole life. Then you may take some of the difference between your not paying for whole life, while paying for term, and invest it, and in the long run you will win, not your agent.

Don't buy an annuity or whole life policy. Go for only a term policy. Payments stay low, and are set in stone. Annuity and whole life policies are sold as investments, but you can do better investing in mutual funds. Use the money you'll save on a term policy.

when you look for life insurance, make sure you buy term life insurance. Lock in the rate for 10, 20 or even 30 years and invest the rest of your money into mutual fund account,401k or IRA. Make sure you have enough insurance so annything happen to you or your husband, the other one have enough money to pay off the mortgage and any debt you may have.

Basic health questions and lifestyle questions. They normally ask if you have had tobacco in the last year, so quitting over a year ago is good. Look for a whole life policy, not term. Try Nationwide (that's who I work for)

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.004
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy