What You Need To Know Before Applying For Life Insurance

Buying a life insurance policy is one of the most difficult decisions you will make due to the vast range of life insurance products, carriers, policies and the nuances of factoring in your own financial situation into the decision-making process. Here are a few tips that will help you make the right decision.

1. 
   Get educated about the life insurance industry and how it works. Get to know the different types of life insurance options you have, how each differs from the other and which one would fit your life insurance needs the best.


2. 
   Take advantage of online life insurance quote providers. You can go from agent to agent to get quotes for a variety of life insurance products but online life insurance quote providers give you opportunity to explore the best policies applicable to your specific situation easily, conveniently and quickly. That’s because life insurance agents have a limited portfolio when compared to the thousands of policies you can find on an aggregator life insurance website. You also need to remember that agents may be biased to certain products since their profession is commission-based. In contrast, the licensed life insurance professionals that work with reliable aggregator websites will offer you unbiased guidance and are likely to recommend products more suited to your needs.


3. Be careful! Not all life insurance quote providers are genuine. Ask for free life insurance quotes from online quote providers who are reliable. How will you know? Look for the seal of the Better Business Bureau (BBB) on the website and check out their rating on the BBB website. In addition, find answers to questions such as: has the agency received any awards or accolades in industry-related publications such as The Wall Street Journal, Forbes, USAToday, Kiplinger’s Personal Finance, Inc 500, etc. What are people saying about this agency on social media networks (blogs and forums).


4. It’s easy to get tricked into buying the cheapest life insurance. There are other factors you should consider before making a final decision such as:




• 
  The financial strength of the life insurance company. Along with a quote, many aggregator websites provide the financial rating of the company quoted. Look for A or A+ ratings by A.M. Best or Standard & Poor’s.


• Product features such as renewability privileges, conversion rights and available riders.


• Are the quoted rates guaranteed? You’ll need to get this in writing to make sure the company doesn’t keep raising your premiums and you have no control over it.


• Make sure that the quote you receive is actually available for you after taking into consideration your health, family health history and lifestyle.




5. Most people’s needs for life insurance are met with the features of a term life insurance policy. No matter how hard your agent may sell whole life, think about whether you really need this product. Whole life is suitable for you if you have a large estate and need to plan payment of your estate taxes, want to augment the retirement fund of a surviving spouse, or leave behind a small inheritance for your children/grandchildren. There are advantages to whole life such as borrowing against the cash value element of whole life without collateral. But whole life insurance, as an investment instrument, doesn’t yield the type of returns that you would expect. In contrast, a term life insurance policy provides you with coverage for the most vulnerable years of your life when your debts are high and your savings are minimal. By the time you reach retirement age, most people have no need for life insurance.


6. Ask questions! Many aggregator websites are supported by a customer service consisting of licensed life insurance professional to answer any of your life insurance queries. Take advantage of their assistance. You should ask questions such as:




• 
  Is the product convertible to whole life later on? If you think you need whole life insurance and don’t have the budget to pay for it right now, you could buy term now and convert to whole life later by choosing a convertible option.


• Can you add more coverage without having to prove insurability? You may want to purchase a small coverage right now and then add on once you get married or begin a family. You should not have to go through an underwriting process again to increase your coverage.


• Are the premiums guaranteed to remain level throughout the term period?


• Is it a joint policy? You may want to consider this type of policy if you are married. A joint policy insures both husband and wife, and the benefits are paid to the surviving spouse. It is usually cheaper than purchasing individual policies.
  
• Can the designated beneficiary be changed? You may want to change your beneficiary later on to include your children as well.




7. 
   
   Most companies will require you to undergo a medical exam, similar to an annual checkup. Be prepared to answer questions related to your health and life style. A medical exam will most likely consist of a blood test, urine sample, blood pressure check, answering a series of questions on health and an electrocardiogram (EKG). Additional tests may be required depending on your personal health profile. You have a better chance of achieving the best results for your medical exam if you minimize your salt and sugar intake seven days before the exam, don’t consume alcoholic beverages 3 days before the exam, and stay away from caffeinated beverages and avoid strenuous exercise at least a day before the exam. You’ll also need to provide a list of your doctors and their contact numbers.

Conclusion



Making a decision is easy once you know the kind of life insurance product you’re looking for and where to look for it. Once you purchase a policy, don’t forget to review it at least once a year to make sure the face value meets your current financial situation.



About AccuQuote:



AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.