One major concern that many clients have is the cost of life insurance. They worry that the premiums will be too expensive and financially unfeasible for them to afford long-term. The monthly/annual cost of life insurance policies can vary quite a bit depending on the type of policy, coverage amount, age and health of the insured. It’s important for clients to get quotes from multiple reputable insurers so they can compare rates and find the most affordable option that fits their needs and budget. Agents can also work with clients to find ways to reduce premiums, such as choosing a higher deductible or lower coverage amount.
Clients also commonly worry about being denied coverage or having to pay higher premiums due to pre-existing medical conditions. This is understandable given that medical history does factor into underwriting and pricing. Agents will guide clients through the application process and let them know upfront if any health issues could cause issues with approval or rates. Clients also have the option to apply for guaranteed-issue policies that do not require medical exams if they have conditions that would lead to higher-risk ratings. It’s also worth noting that many temporary or minor conditions may not impact insurability. Working with an experienced agent can help manage expectations around what conditions could pose problems.
Another concern is not trusting that the insurance company will really pay out the death benefit if needed. Life insurers are highly regulated and must maintain strong reserves to ensure they can pay all valid claims even during economic downturns. Agents can show clients financial ratings from credit agencies to prove the stability of potential carrier choices. Clients should also feel confident knowing that the death benefit will generally be paid out quite promptly to beneficiaries, often within days or weeks of filing the claim.
Clients often worry about policy costs increasing drastically over time. Most permanent life insurance policies like whole life and universal life have level, guaranteed premiums that will not rise regardless of age or health changes as long as premium payments are maintained. Term life premiums do tend to rise upon renewal, but rates are also locked in for the initial 1-5/10/20 year term period. Agents can demonstrate premium illustrations outlining how rates are structured to reassure clients.
Another concern stems from not understanding all the policy details and options. For example, clients may be unsure of whether to choose term or permanent insurance or what riders are available. This is where working with a knowledgeable agent makes all the difference. Reputable agents will take the time to thoroughly explain the differences between policy types, review illustrations of projections, discuss available riders, and answer any questions. They can help determine the best solution based on individual goals, budget and timeline.
Some clients worry about coverage being canceled unexpectedly. Life insurers have strong incentives to retain customers long-term for the recurring premium revenue. Policies are also contracts, so they generally cannot be terminated without valid reason. Non-payment of premiums is usually the only cause for cancellation. And even then, policies have grace periods and options to reinstate coverage by paying overdue amounts. Agents can ease this concern by addressing continuation protections upfront.
Clients also sometimes fear that beneficiaries may encounter challenges or delays collecting death benefits. The claims process is built for efficiency – agents provide beneficiaries with the required claim forms upon a policyholder’s passing and help them through quick submission. Insurers then review and generally issue payouts promptly according to policy and state regulations. Death certificates are the primary documentation needed in most straightforward cases. Agents and carriers take compliance and customer service seriously regarding timely and hassle-free benefits distribution.
Worries about contract language and overly complex policy details are commonplace as well. To assuage such qualms, reputable agents fully disclose all policy particulars upfront in easy-to-understand terminology. They address any parts of the contract that need clarification and give clients time to review documentation before committing. This educational approach helps clients make informed decisions and feel at ease with the agreement.
Purchasing life insurance does involve several typical concerns. Addressing these worries through open communication with an experienced agent can provide knowledgeable responses, set realistic expectations and help find the right coverage solutions to meet individual needs and budgets. With the proper guidance, clients can feel confident in their life insurance choices and know their loved ones will receive financial protection as planned for if tragedy strikes. An agent acts as a trusted advisor to lead clients through the process and ensure peace of mind regarding any protection uncertainties. With the prevalence of online sales models, the value of such professional life insurance advice and reassurance cannot be overstated.