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After gathering facts about your financial
needs and goals, your agent will recommend a type of
policy that will suit your objectives. The agent may
also provide a "policy illustration" that
helps show how the policy will work.
Your policy is a legal contract,
so it's very important that you know what it provides.
If there's anything you don't understand, ask for
an explanation.
What else should you ask your agent?
Will this policy really
meet my needs?
For term life policies, consider
these points:
* How long can I keep this policy?
Can I renew the policy? For how long?
* When will my premiums increase? Annually? Or after
a longer period of time, such as five or ten years?
* Can I convert to a permanent policy? Some policies
allow you to convert the policy to permanent insurance
without a medical exam, regardless of your physical
condition at the time of the conversion. These policies
are known as "convertible term."
For permanent life policies, consider
these points:
* Can I afford the premiums? This
type of long-term coverage can be expensive
* Make sure you know the amount you
would receive if you surrender your policy.
Remember that permanent insurance
is designed to provide protection for your entire life.
If you don't plan to keep the product for many years,
consider another type of policy. Cashing in a permanent
policy after only a couple of years can be a costly
way to get insurance protection for the short term.
What happens if I become
disabled and can't pay the premiums on my policy?
Provisions or "riders"
that provide additional benefits can be added to a policy.
One such rider is a "waiver of premium for disability."
With this rider, if the insured becomes totally disabled
for a specific period of time, premiums don't have to
be paid for the duration of the disability.
Are other riders available?
Another rider, called an "accidental
death benefit," provides for an additional benefit
in case of accidental death.
A relatively new rider offered by
some companies provides "accelerated benefits,"
also known as "living benefits." This rider
allows you, under certain circumstances, to receive
the proceeds of your life insurance policy before you
die. Such circumstances include terminal or catastrophic
illness, the need for long-term care or confinement
to a nursing home.
Ask your agent for information about
these and other policy riders.
When will the policy be
in effect?
If you decide to purchase the policy,
find out when the insurance becomes effective. This
could be different from the date the company issues
the policy.
Is a "Buyer's Guide"
available?
Connecticut's insurance department
requires companies to provide consumers with a buyer's
guide to help them understand life insurance terms,
benefits and costs. Your agent can provide you with
a copy.
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