Life insurance proposals are difficult to compare. The illustrations are long, the assumptions are buried, and the vocabulary is unfamiliar. The most reliable way to evaluate one is not to master the arithmetic but to ask a handful of direct questions and pay close attention to how comfortably they are answered.
Questions About the Recommendation
- What specific problem is this policy solving for me, in one sentence?
- What would happen if I did nothing — what exactly is exposed?
- Why this type of coverage rather than a simpler or less expensive alternative?
- How did you arrive at this coverage amount and this premium?
- What would make this a bad decision for someone in my situation?
Questions About the Numbers
- Which figures in this illustration are contractually guaranteed, and which are not?
- What does this look like on the guaranteed-only columns?
- What assumptions is the non-guaranteed projection based on, and what happens if they are not met?
- What are my values in years one through five compared to the premiums I will have paid?
- What happens if I need to reduce or stop paying premiums in year three? Year ten?
Ask to see the guaranteed columns. The response tells you almost everything you need to know about the conversation you are in.
Questions About Access and Flexibility
- If I need to access value, what are my options and what do they cost?
- How does borrowing against the policy affect the death benefit?
- What causes this policy to lapse, and what would happen if it did?
- Can this coverage be changed later if my business or family circumstances change?
- What are the surrender charges, and how long do they apply?
Questions About the Person Selling It
- Are you licensed in my state, and are you an independent agent or captive to one company?
- How many carriers did you compare, and why did you land on this one?
- How are you compensated on this recommendation?
- Who services this policy after it is issued, and who do I call in five years?
- Have you asked me enough about my situation to be making this recommendation?
Questions Specific to Business Owners
- Does this account for business debt I have personally guaranteed?
- How does this coordinate with what my attorney and tax professional are already doing?
- Does it assume my business keeps performing at its current level?
- How does this interact with coverage my co-owners or partners may hold?
- What would my family have to do in the first ninety days if I were gone?
Warning Signs
Some responses should give you pause: pressure to decide quickly, reluctance to show guaranteed values, projections presented as certainties, claims about tax outcomes that no tax professional has reviewed, a recommendation made before anyone asked about your circumstances, or slogans standing in for explanations. A licensed agent who is doing the job properly will be comfortable with every question above, including the ones about their own compensation.
Educational Disclosure
This article is general education, not tax, legal, or individualized financial advice. Uhud does not provide tax or legal advice. Discuss your specific situation with your qualified tax professional. Policy availability and results depend on individual circumstances, carrier, underwriting, and policy structure.
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Bring these questions to us. Uhud Insurance & Financial Services is an independent life insurance agency, and our process begins with understanding your needs, goals, budget, underwriting profile, and the carrier options available to us.
