With the convenience of the Internet, the process of purchasing term life insurance, has become much simpler. The following steps will help take the mystery out of life insurance along with helping you get the insurance plan that fits your needs.
Decide what kind of term life insurance to buy. Depending on the purpose, you may want Universal, term or whole life.
Do some personal analysis to determine the amount of whole life insurance coverage you actually need. You can either compute an income multiple your annual earnings multiplied by at least three and preferably five or you can add up your outstanding over all debt and estimate your family’s needs.
Take advantage of our user friendly online service to complete a profile and then either shop rates yourself from the online rate comparison chart or request a local agent to prepare rates for you.
While waiting for your variable life insurance cost quotes to be prepared, you can check the ratings on several companies. You want a organization that is strong financially, has been in business a long time and that pays claims in a timely manner.
If you decide to meet with an broker personally, be prepared to ask some pointed questions:
To what extent would that agent represent you?
Does the firm have policies that will last to age one hundred or even to one hundred twenty.
Does the firm have radically higher rates for smokers
Does the firm require a visit from a paramedic? Some companies only require a paramedical exam and doctor’s report on amounts of 100,000 or more.
Does the firm have an “easy issue” insurance service that requires less medical underwriting and that pays without a two year waiting period?
What payment process does the companies use? Most require you to make the first payment and then authorize automatic bank draft for future payments.
Strongly consider using an agent. life insurance does not have standardized language from one companies to the other. If you try to do it alone, you could easily end up with something like “modified term life insurance,” a type of universal life insurance that has cash value and insures you to age hundred, but also has premiums that increase at a predetermined frequency. If an agent misinforms you regarding a insurance policy, the firm is responsible. If you make the decision on your own, you bear the responsibility even if you don’t understand the terms.
Once you have decided on a term life insurance insurance service and answered the questions for the application, all you have to do is wait. You still aren’t fully committed. By law, you have a 30 day free look from the time your universal life insurance insurance plan is delivered to you. If you see something you didn’t expect or didn’t want, you can return it and have your first payment refunded.
Usually, a little planning, an open mind and an understanding of the process can virtually guarantee a universal life insurance insurance service that will satisfy you and your family for many years to come.