With September being Life Insurance Awareness Month, the Insurance Information Institute recently listed some of the questions individuals should ask themselves before purchasing a policy.
One of them is determining how much life insurance coverage is needed for policyholders to provide for their loved ones. According to the III, while the answers to this vary from person to person, a good rule of thumb is to purchase a policy that is 10 times one's annual income.
Another important question potential life insurance policyholders should ask themselves is what type of policy to get. As the III indicates, life insurance comes as either term or permanent. Term pays beneficiaries for as long as the "term" runs. Permanent is just as the name implies - it's always in force, so long as the premiums are paid. Individuals should consider what their finances are to answer this question.
Some people may get their life insurance through their employer, but III says policyholders should question whether it will be enough. According to the III, it often won't be, as employers typically provide payment that's equal to one year of the employer's salary.
These are just some of the questions agents may want to go over with their life insurance leads.