When it comes to shopping for life insurance, most people seem to ask about price and eligibility. Are these the most important things that you should consider when looking for a policy? The truth is that most people ask the wrong questions about their life insurance.  Actually, many times people don't ask enough questions. Let's examine a few frequently asked life insurance questions, and replace them with questions you SHOULD ask about purchasing life insurance.

You're an insurance agent, how much do you recommend?

While asking the recommendation of professional seems to be the most prudent course of action, your insurance agent should never tell you to purchase a specific amount of insurance. Most of the time, purchasing life insurance involves fulfilling a need. A good example is the purchase of a new home with a 30 year mortgage. In order to guaranty that your home as an inheritance, purchasing a 30 year mortgage protection term (temporary) insurance policy equal to the value of your mortgage's principle balance will ensure your family has the cash needed to payoff your mortgage. On the other hand, if you simply need enough cash for burial insurance and final expenses, a small whole life (permanent) insurance policy may fit your situation. In these cases, your agent should help you determine what your immediate needs and provide policy examples that fit your immediate insurance needs. In this case, should ask, "What factors should I consider before I choose a life insurance policy?"

How much does life insurance cost?

If you're like most people, you've heard or seen a radio or TV commercial regarding cheap life insurance. While the cost of a policy should always be a consideration, looking at the cost of a particular policy can lead to purchase to buy the wrong policy. Recently, I spoke to a 65 year old client regarding the purchase of life insurance. During our discussion, she explained that the last agent she spoke with told her to purchase term insurance and invest the difference. While that is a good strategy for someone in their 30s and 40s, giving this advise to a 65 year old retiree is rather foolish. In the case of the 65 year old retiree has to consider more than price. What about the retiree's life expectance? According to AARP studies, the average 65 year old person with average health has a life expectancy of at least 85 years or more. So, should this retiree purchase a term policy or a permanent policy? While buying term and investing the difference is okay, if the person is living on their retirement income, investing savings could be difficult on a limited income. In case instead of asking how much a policy costs, a person should ask the following: "What is the best life insurance concept for my budget?"

Does this life insurance policy require a physical?

Of all the questions asked regarding life insurance, asking about medical requirements seems to scare people the most. Generally, for life insurance applications of $100,000 or more, insurance companies require some level of medical underwriting. As a result, many people say they are afraid of needles or they are afraid of the results. Let's be realistic. Medically underwritten policies generally cost less than simplified issued policies; if you qualify. There are pros and cons to medically underwritten and simplified underwritten policies. The truth is that there is no good answer. You could have a history of breast or skin cancer but still qualify for life insurance at preferred rates because you've done everything correctly. On the other hand, you could be a young 28 year old that appears completely healthy, but find out that you have cancer after completing your life insurance examination. These are actual cases. Regardless of your background, you and your agent should consider your medical history along with your family's medical history when choosing the right life insurance policy. So instead of asking if a company requires a physical, you should probably ask, "Based on what we know, what are the pros and cons to medically underwritten life insurance versus non-medical (or simplified issue) life insurance?"

In the end, purchasing life insurance is more about the individual applying for the policy, their needs, goals, along with the relative health of that individual. So the next time you're looking for life insurance, make sure your policy fits you like a glove. If your need is mortgage protection or temporary income replacement, a term life insurance policy might be best. On the other hand, if you're looking for affordable permanent protection, you may want to look at a whole life or universal life insurance policy. Considering the fact the average American purchases life insurance 3 to 5 times per year, the policy you purchase today may not be the first or last policy you purchase. Since things change, make sure that you get the right policy and ask the right questions.