Life insurance is one of those topics most people know they should deal with — but keep putting off. And when they finally do sit down to buy it, they're often overwhelmed by the options, confused by the terminology, and unsure whether what they're being sold is actually what they need.
After years of helping Texas families navigate this decision, I've found that the difference between a good policy and a poor one almost always comes down to a handful of key questions — questions that most people don't know to ask.
Here are the five I'd want you to ask before signing anything.
How much cover do I actually need?
The most common answer you'll get from a sales-driven advisor is "10 times your annual salary." That's a starting point, not an answer. Your real number depends on your mortgage balance, how many dependants you have, what your spouse earns, how long your children need financial support, and what debts you'd leave behind. A proper needs analysis takes 20 minutes and makes a significant difference to both your coverage and your premiums.
Term or whole life — and why?
Term life is simpler and cheaper — it covers you for a fixed period (10, 20, or 30 years) and pays out if you die during that term. Whole life covers you permanently and builds cash value over time, but costs significantly more. For most Texas families, term life is the right answer. Be wary of anyone pushing whole life hard without a clear explanation of why it suits your specific situation — the commissions are considerably higher.
Do I need a medical exam?
Many policies now offer "no-exam" or "simplified issue" options, particularly for healthy applicants under 50. These are faster — sometimes approved within 24 hours — but may carry slightly higher premiums. If you're in good health and want the best rate, a full medical underwriting process usually results in lower long-term costs. Your advisor should be running this comparison for you.
What exactly is excluded?
Most policies exclude suicide within the first two years, and some exclude specific pre-existing conditions or high-risk activities. Ask your advisor to walk you through the exclusions specific to your application — don't assume anything is covered. This is especially important if you have a health condition, participate in extreme sports, or have a high-risk occupation.
Is the insurer financially stable?
A life insurance policy is a promise to pay — sometimes 30 years from now. You want to know that the insurer will still be around and solvent when that moment comes. Check the carrier's financial strength rating from AM Best, Moody's, or S&P. Any carrier rated A or above is generally considered very strong. We only work with carriers that meet this standard.
"The right life insurance policy isn't the cheapest one or the one with the biggest payout — it's the one that precisely matches your family's needs, from a carrier you can trust, at a price that won't strain your budget."
One More Thing
Review your policy every few years, or after any major life event — marriage, divorce, a new child, a significant pay rise or pay cut, buying a home, or paying off a mortgage. What made sense when you bought it may not be right for your life today. This is something we do for all our clients at no extra cost.
If you'd like to talk through your options without any pressure, we're here for exactly that conversation.