How to Buy Life Insurance in 8 Steps – Get our quote now

As we age, having a life insurance policy offers financial peace of mind. It can replace income after retirement, help you pay off your outstanding debts and support your loved ones after your death. A life insurance policy can be purchased at almost any age and there are many reputable suppliers on the market. However, buying a life insurance is different from buying other types of insurance. In this guide, we will explain the steps you need to take to get a life insurance policy. How to Buy a Life Insurance Policy Buying a life insurance policy can be complicated if you have never done it before. Unlike home or auto insurance, there are many types of life insurance policies. Each has different advantages and disadvantages and prices. If you are in the life insurance market, here are the steps to follow to purchase a policy that suits you. Decide if you need life insurance First of all, decide if you need life insurance. The main reason why people buy life insurance is to financially support their spouse or children after death. If you are a widower, unmarried or have no children, there is a good chance that you don't need life insurance. However, if you have a debt, mortgage or reduced income because of retirement, having life insurance can give you financial support when you are older. Choose a type of life insurance policy There are two types of life insurance coverage: time and permanent. There are also two types of permanent insurance: full and universal. Term life insurance is less expensive with less benefits, while permanent life insurance is more expensive with more benefits.
Term life insurance: Term life insurance is generally the cheapest and most common option. Provides coverage for a specific period of time, usually between 10 and 30 years. Term life insurance is used to provide financial support to the designated beneficiaries. For example, if you die during the period, your children or spouse will inherit the money from the insurance company. Once the deadline expires, the benefits end.
Whole life insurance: Whole life is a type of permanent life insurance that has constant premiums and accumulates overtime in cash. If you get insurance from a joint venture, the policy is generally eligible for dividends. With some full-life policies, policyholders have to pay their premium until death, and other policies only require a premium for a certain number of years.
Universal life insurance: universal life is the other type of permanent coverage. It accumulates cash value and comes with investment options. It can also be broken down into variable and indexed universal life insurance. Universal life insurance is recommended for people who feel comfortable with financial investments. Browsing universal life insurance can be tricky, so talk to an insurance agent if you have any questions.
You may want to do further research to find out which option will best suit your needs. Search for several life insurance companies Next, you will want to find some life insurance companies that attract you. Remember that no two companies are alike. When choosing a life insurance company, search the website and look at the policy options. The best carriers offer flexible covers and customizable plans. It's also important to review customer service reviews through J.D. Power or BBB to see what existing customers have to say. Additionally, check your financial strength by reviewing the ratings of each company from AM Best, S&P and Moody. 4. Request multiple life insurance quotes After selecting a handful of potential suppliers, get quotes from each company. Most companies don't include the price of rewards on their website, so getting quotes will help you determine which supplier can offer you the best deal. Most major life insurance companies have an online odds generator that allows you to get an instant quote directly from the website. If not, get in touch with an agent. When you receive a quote, you will be asked to provide some personal information, including age, address and gender. In addition, you will need to submit basic information about your medical history. Usually, you will be asked about your lifestyle, if you smoke, past surgery and medications you are taking. It is not necessary to send official medical records to get a quote. The insurance company will use this information to calculate the rate. Fill in the application After choosing the most convenient supplier with the best coverage, fill in a question. You will be asked to include your basic personal information, social security number and driving license number. In addition, you will need to submit a doctor's declaration (APS), which helps the insurance company to verify your medical history. APS ensures you have the right policy and is used for calculating death benefits. Most life insurance applications can be completed online and it is usually a quick procedure. Preparing the Telephone Interview After submitting an application, the insurance company may request a secondary telephone interview. The interview is mainly used to confirm the information you entered in the question, but some additional questions may be asked. For example, the interviewer will want to know more about your lifestyle and hobbies, your financial health, your income and any other life insurance policy you have. The interview is generally quick and will be scheduled shortly after the physical application is sent. 7. Plan a life insurance medical exam Most life insurance companies require applicants to get a physical exam before they can be approved for coverage. The life insurance medical exam is like a regular medical appointment, but the insurance company's medical examiner will visit your home or office to see you. They will take your vital organs, such as height, weight and blood pressure, and will draw blood. The exam lasts about 30 minutes and you can schedule it during the telephone interview. 8. Wait for approval Once the application process is complete, the job is done. The underwriter of the insurance company will take the information collected from the application, from the telephone interview and from the medical examination to determine if you are eligible for coverage and, in that case, what the premium is. Since there is so much information to review, the approval process can take several weeks or up to a month. If you receive approval and are satisfied with the listed prize, you will be sent the documents relating to the policy to be signed and approved. You will also decide whether you want to pay your premium monthly or annually. After the policy documents are signed, you will send a physical copy to your insurance company. It is also a good idea to keep a second copy handy in your home. Frequently Asked Questions At what age should you buy life insurance? The younger you are, the less you will pay for life insurance. However, most people don't need to use life insurance benefits until they are older or retired. If you can afford to buy life insurance at 30 or 40 years old, it's a smart idea. Most life insurance companies will allow you to purchase a policy up to the age of 80. What are the best life insurance companies? There is no life insurance company that stands out as the best for everyone. See customer reviews, financial strength and policy options that each company offers. You will also need to get multiple quotes to determine which company can offer you the best offer.