Life Insurance

15 Questions to Ask Before Buying a Life Insurance Policy

By the PolicyZen Team · Updated March 2026 · 10 min read

Most people buy life insurance without asking nearly enough questions. The agent presents a policy, it sounds reasonable, you sign. Years later you discover the policy has a feature you didn't want, a rider you're paying for unnecessarily, or a death benefit structure that doesn't actually serve your family the way you intended.

Here are the questions that make the difference.

A note on agents: Life insurance agents earn commissions — often 50–100% of your first year's premium. A whole life policy paying $1,000/month makes your agent $10,000–12,000 in year one. A $60/month term policy makes them $600–720. This doesn't mean agents are dishonest, but it does mean your interests and their compensation aren't always perfectly aligned. Ask good questions.

About the Policy Itself

Question 1

Is this term or permanent coverage, and why are you recommending this type for my situation?

The answer reveals whether the agent understands your needs or is steering you toward a higher-commission product. For most people in their working years with dependents, term is the right answer. A good agent can clearly explain their reasoning.

🚩 Red flag: Vague answers about "lifetime protection" without addressing your specific financial situation.

Question 2

How did you calculate the death benefit amount you're recommending?

There should be actual math behind this number — income replacement years, mortgage payoff, education costs, existing assets. "10x your salary" is a starting point, not an answer. A good agent walks you through the calculation.

Question 3

What are all the exclusions in this policy? When will claims be denied?

Every life insurance policy has exclusions — death by suicide within the first two years, fraud in the application, death during criminal activity. Know what they are. Some policies also exclude high-risk hobbies like skydiving or scuba diving.

Question 4

Is there a contestability period, and what does it mean?

Nearly all life insurance policies have a 2-year contestability period from the policy date. During this window, the insurer can investigate and potentially deny a claim if they find misrepresentation on the application — even unintentional errors. After 2 years, they can only deny claims for outright fraud. Know when your contestability period ends.

Question 5

What happens to this policy if I miss a payment?

Term policies typically have a grace period (usually 30 days), after which the policy lapses. Permanent policies may use available cash value to continue premium payments. Know what your grace period is and what the reinstatement process looks like.

About the Insurer

Question 6

What is this company's financial strength rating?

You're buying a promise that will potentially be kept 30–40 years from now. The company needs to still exist and be financially capable of paying. Check ratings from AM Best (look for A or better), Moody's, and S&P. Avoid companies with weak ratings — this is a long-term relationship.

Question 7

What is this company's claim denial rate and average claim processing time?

Insurers don't advertise their denial rates. But you can ask — and you can research through state insurance department complaint ratios. Some insurers are significantly more likely to dispute claims than others.

About Cost and Structure

Question 8

Are my premiums guaranteed, or can they change?

Term life premiums are typically level (locked in) for the entire term. Universal life premiums can change if the underlying assumptions (investment returns, mortality costs) change. Make sure you understand whether your payments are fixed or variable.

🚩 Red flag: Universal or variable life policies with "illustrated" projections based on optimistic investment returns that may not materialize.

Question 9

What riders are included, which are optional, and what does each cost?

Get an itemized breakdown. Some riders are worth having (accelerated death benefit, waiver of premium). Others inflate premiums without proportional value (return of premium, accidental death benefit). Know what you're buying and what each piece costs. See our complete guide to riders.

Question 10

Can I see an in-force illustration showing how this policy performs under different scenarios?

For permanent policies with cash value, ask for illustrations under three scenarios: guaranteed (worst case), current assumptions, and midpoint. Agents sometimes show only the optimistic current-assumption illustration. The guaranteed illustration shows the minimum you can expect.

About Your Situation

Question 11

How should I handle the medical exam, and what will they test for?

Most fully underwritten policies require a paramedical exam — blood draw, urine sample, blood pressure, sometimes an EKG. It's usually free, done at your home or office, and quick. Disclose everything accurately — misrepresentation can void the policy during the contestability period.

Question 12

Does my job, hobbies, or health history affect my rate or coverage?

Hazardous occupations (commercial pilots, roofers, loggers), high-risk hobbies (skydiving, rock climbing, racing), and health conditions all affect pricing and may result in exclusions or higher premiums. Disclose everything on the application — let the insurer make the call rather than discovering it later at claim time.

Question 13

How should I structure my beneficiary designations?

Primary vs. contingent beneficiaries, per stirpes vs. per capita distributions, trusts for minor children — beneficiary designation mistakes are common and can result in the wrong people getting the money or it going through probate. If you have a complex family situation, involve an estate planning attorney.

Question 14

Can I convert this policy, and under what terms?

For term policies, ask specifically: can I convert to permanent coverage, until what age, to which products, without a new medical exam? Convertibility is valuable optionality. Know the specific terms before you need them.

Question 15

How is your compensation structured for this recommendation?

A straightforward question that good agents answer directly. Knowing whether your agent earns a flat fee or a commission (and how much) lets you calibrate how to weight their recommendation. Fee-only financial advisors who don't earn commissions can also review life insurance needs objectively.

🚩 Red flag: Evasive or defensive response to a direct, reasonable question.

Frequently Asked Questions

How do I compare policies from different companies?

Compare on four dimensions: death benefit amount, premium cost, financial strength rating, and policy features. Use an independent broker (not a captive agent who can only sell one company's products) to shop multiple carriers. For term life, price comparison sites make it easy to see rates side by side. For permanent policies, compare in-force illustrations at the guaranteed rate.

What should I disclose on my application?

Everything. Life insurance applications ask about health history, medications, tobacco use, family medical history, occupation, and sometimes hobbies. The application is a legal document. Misrepresentation — even errors you didn't intend — can give the insurer grounds to deny claims or rescind the policy during the contestability period. When in doubt, disclose.

Is it better to buy through an employer or independently?

Employer group life insurance is usually cheap or free and worth taking. But it's typically capped at 1–2x salary (not enough for most families), and you lose it if you change jobs. Individual policies travel with you and can be sized appropriately. Most people should have both: take what the employer offers and supplement with an individual policy.