Purchasing life insurance can seem overwhelming. After all, you have numerous companies offering these policies, different policy types to choose from, jargon to understand, and a coverage amount to opt for. And, that’s why we’ve listed 8 simple steps to help you buy the right policy.
Decide if You Really Need Life Insurance
People usually get life insurance so their dependents remain financially protected if they pass away. However, if you are retired, widowed, or unmarried and have no dependents, you may not need a policy.
Pick a Policy Type
The two main types of life insurance plans are term insurance and permanent insurance. While term insurance offers coverage for a specific number of years, permanent life insurance offers you coverage for the remainder of your life and also builds a cash value. Term insurance, however, is the cheaper of the two options and is a good option for anyone needing life insurance coverage without spending too much.
Research Different Companies
Next, you need to check the benefits and premium quotes offered by different companies. Many insurance firms allow you to do this through their website, while some may require you to give them a call or go to their nearest branch.
Once you have a few quotes from different life insurance companies, compare the quotes and the coverage offered to you, and zero in on one policy.
Complete Your Application
Once you’ve chosen a particular policy, you’ll need to fill out the application form and submit it to the insurance company along with the documents they require.
Prepare for your interview
Most insurance companies will require an interview with you, either via phone or in-person, once you’ve submitted the application.
Schedule your medical examination
Insurance companies may also request you to get a physical exam done before they approve your application, so you’ll need to clear out your schedule for this.
Wait for approval from the company
Once you’ve submitted your application and done your physical exam, your job is pretty much done. You can now await approval from the insurance company.
If the insurance company approves your application, you will be sent a policy document. Make sure to go through this document, sign it, and mail a physical copy of it to the insurance company. Keep a second copy of the document with you.