Life Insurance: Questions to Ask Before Choosing Coverage

Life insurance can help loved ones manage expenses after a death. The right coverage depends on who relies on you, what you want to protect, and the premiums you can sustain. At Dominion, our independent agency helps individuals and families understand their options before making a decision.

Start with the purpose of coverage

Consider income replacement, housing costs, debts, caregiving, education and final expenses. Review savings and existing insurance alongside these needs. A coverage amount should reflect your circumstances rather than a one-size-fits-all recommendation.

Compare term and permanent insurance

Term insurance provides coverage for a specified period. Permanent insurance is designed for longer-term coverage when policy requirements are met, and some policies include cash value. Premiums, guarantees, flexibility and risks differ. Ask for a clear comparison of costs and benefits, including what happens if you miss a payment or stop the policy.

Cash value is not the same as the death benefit. Loans and withdrawals can reduce policy values and benefits, and may have tax consequences or contribute to a lapse. Separate guaranteed figures from projections when reviewing an illustration.

Review coverage through work

Employer-provided insurance may be helpful, but check the amount, beneficiary information and what happens when employment ends. Ask whether you can continue or convert coverage, what deadlines apply, and what it would cost.

Questions to bring to a review

• How long will coverage last, and can premiums change?

• What underwriting, exclusions or waiting periods apply?

• Which benefits are included, and which cost extra?

• Are beneficiaries current, including any contingent beneficiaries?

• What would changing an existing policy mean for costs and coverage?

Do not cancel existing coverage until you understand the consequences and any replacement coverage is in force. Eligibility and availability vary by insurer, policy and state.

Take the next step

Explore Dominion’s life insurance services or request a consultation. Bring current policy information and your questions. Our role is to help you make an informed choice.

For additional consumer education, visit the National Association of Insurance Commissioners’ life insurance resource. This article provides general education, not individualized tax or legal advice.