A life insurance premium is tied to the person applying and the policy being considered. A sample price in an advertisement cannot tell you what coverage you qualify for or what it will cost.
- People who depend on you
- Coverage needs
- Policy options
Use the guide to prepare questions. Your actual options depend on the policy, insurer, and your circumstances.
The useful takeaways.
- The applicant and the policy both influence pricing.
- Compare benefit amount, duration, features and payment terms.
- A personalized quote requires accurate information and applicable underwriting.
In this guide
The person applying is part of the picture
Age, health information, tobacco use, and other underwriting considerations can affect a proposal. Requirements vary by insurer and product. Some applications may ask for an exam or additional information; others follow different processes.
Answer application questions accurately. If you are unsure how to provide sensitive information, use the secure process requested by the agency or insurer rather than ordinary email or text.
The policy design matters, too
The benefit amount, type of coverage, duration, and selected features also shape the discussion. A short-term advertisement and a permanent policy illustration may be answering different needs, even if each displays a monthly number.
Ask whether a premium is guaranteed for a stated period, whether it can change, and what must be paid to keep coverage in force. Compare any riders or other features rather than assuming they are included.
Use a quote to understand a specific option
Bring the purpose of the coverage and your existing policies into the conversation. Ask which assumptions are reflected in a preliminary estimate and what information remains to be verified.
For a quote based on your circumstances, talk with John about available options and the information the insurer needs. A preliminary estimate is subject to the insurer’s underwriting and approval. Do not cancel existing life insurance based on an unconfirmed replacement quote.
General insurance education from Nauyokas Insurance Agency. Sources and further reading are listed below. Available coverage, eligibility, costs, and claims depend on the actual policy and circumstances. Hypothetical examples do not determine claim outcomes. This is not a personalized insurance recommendation or legal, tax, or investment advice.
Have a question about your own policy? Talk with the appropriate advisor.
