Where Do I Begin When Shopping For Life Insurance?
When it comes to purchasing life insurance you may be unsure of the best way to go about purchasing a policy. Here are some of my ideas to help you with shopping for life insurance.
Step 1: Figure out which type of life insurance you need. For many people who have families, a mortgage and other debts or loans are usually looking for term life insurance. If you are mainly concerned with having a permanent policy that will stay with you as long as you live, you may consider a whole life policy. So you need to ask yourself: What would I want the money from a life insurance policy to be used for and cover if I suddenly pass away? List all of the things you and a spouse / partner are responsible for such as young children, debts, loans and a mortgage that someone else would have to worry about and pay for if you were to suddenly pass away.
Step 2: Do your research. You may have family members or friends that already have life insurance policies. Ask them what type of life insurance they have and why they purchased that type of policy. Ask them if they are happy with the policy and the service from the carrier who issued the life insurance. Also, do some research on the web sites of carriers you are interested in. On their websites you can learn about the history of the life insurance company, view their ratings and get a sense of that company’s values and core beliefs.
Step 3: Remember life insurance quotes are estimates. When you call a life insurance company or answer a few brief questions online and receive a quote, the price you are given is an estimate and can change. The quote you are given may not be the final price you will pay for life insurance. It’s a good idea to find out what health class the quote is based on. Examples of health rating classes are Standard, Standard Plus, Preferred Non Tobacco and Preferred Tobacco (if you smoke).
Step 4: Understand the life insurance application process. Find out exactly what you need to do in order to apply for life insurance and what is the estimated timeframe to find out if you are approved and what the final premium is. Sometimes it can take a while for the life insurance company to reach a decision and you want to have an understanding of the estimated timeframe involved so you are not left wondering whatever happened to your application. Always take down the name and number of the person you are working with so you can easily contact them.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.