Chicago Insurance Forum

When shopping around for the best life insurance term policy it is important to ask the following questions in order to make a well-informed decision:
What is the premium amount for different terms? This is significant since the premiums on identical life insurance policies from different companies can vary hugely.
Are you paying for extras that you might not necessarily need such as serious illness insurance?
What happens if you stop or miss any payments?
What happens if you cancel your life insurance policy before the term ends?

Smoking is a health hazard so life insurance companies charge a higher premium if you smoke. Worse yet, a smoking-related illness may even prevent you from obtaining life insurance coverage at all.

If you do smoke, the best approach is to be truthful. Don't lie about your smoking habit just because you're afraid the insurance company will charge you more for insurance. Because a life insurance policy is a legal contract, lying on your application is fraud that could invalidate your policy.

If you are not in good health, life insurance can be difficult and expensive to obtain.
The cheapest rates go to those who are in good health and who have a family history of good health.

If you take heart medication or are grossly overweight, you may pay 50 percent more than preferred rates for life insurance. If you smoke, have a risky occupation, or engage in risky sports like skydiving, you'll pay even more for life insurance.

Changing the beneficiary on a life insurance policy is generally a simple matter. Contact your insurance company and follow instructions for executing a change of beneficiary. Beneficiary change requests must be in writing, usually on a form that your insurer will provide. Some life insurance companies actually make a physical change to your insurance policy to reflect the new beneficiary, but this is unusual.

If you need insurance for a car, a home appliance or even a house, you will shop around for quotations before you buy the coverage. Life insurance is a more important long term commitment and therefore your needs have to be considered carefully before you purchase the policy.

You should comparison shop between several life insurance companies and policies to ensure that you are getting the best value for your money and that all your needs are being met.