So you are ready to get yourself a life insurance policy, but not sure on how to buy one. There are many different ways to acquire a life insurance policy, whether it’s from a local agent, your bank or an independent broker. However, there is one way to buy a policy that really stands out from the rest.
Thanks to the power of the internet, you can find a policy and get the entire process complete without leaving the comfort of your home. With that being said, it’s in your best interest to work with an independent online insurance agency like ours. The reason is simple, you can compare quotes with over 60 top rated companies in one place and request an application online unlike traditional agencies who only represent one or two companies. Oh, and if you are worried about the cost, well don’t since life insurance rates are fixed by the law and are the same regardless of whom you buy from.
Since we established that buying life insurance online is the most convenient and cost effective, let’s go through the three steps on how to buy a policy.
1. Determine Life Insurance Need
Before we start comparing different plans it’s important to establish the amount and type of coverage you should buy. The amount can be calculated by doing a quick needs analysis usually done by the agent. Basically, you want to get enough coverage to replace your income, cover the funeral cost, college funding, paying off a mortgage and any other expenditures. Once you figure out how much coverage you need, next is to figure for how long.
There are two types of coverages which are a term and permanent life insurance plans, also known as whole or universal life. The majority of Americans buy a term policy since it will provide coverage during working years or when the children are young. The term is quite affordable and can be locked in for a period of 5 to 30 years. If you feel like the life insurance need is indefinite than a permanent policy will do. Once again, remember a good agency can help you figure all this out.
2. Compare Life Insurance Rates
Now that you have a good idea of what you are looking for, it’s time to find the best plan. Here is where you want to use a quote engine to see which companies are offering the most competitively priced plans. In addition to the cost, you want to make sure the company is reputable with a good rating. The good news is that you can use our quote engine to compare quotes instantly with all the top companies and also see each company’s background information. We don’t require your personal information so you can run as many term life or permanent life insurance quotes as you like.
3. Apply for Coverage
If you are ready to move forward its time to complete an application and schedule your medical exam. The majority of companies will let you sign the application electronically via email. As far as a medical examination goes, a nurse will come out to your home at your convenience to check your blood pressure, height, weight and draw a blood and urine sample. You don’t have to pay for the medical exam. Also, don’t forget that you can actually skip the medical exam by working with companies that don’t require one. Thanks to the new technologies you can apply for life insurance over the phone and online.
Other Life Insurance Shopping Tips to Consider
Purchase Life Insurance Online
Lots of clients think of sitting across from an agent at a table when then think of life insurance. They also don’t realize that times have changed and yes, you can secure a policy from the comfort of your computer. Not only is this the most convenient way to get life insurance it happens to be the most cost effective way as well since online brokers like ourselves work with a large number of companies so they will shop around to get you the best rate. Traditional local agents typically work with one or two companies versus over 60 like our company. And because the rates are fixed by the law it only makes more sense to use an online marketplace to secure a life insurance plan. Also, if you’re a busy person like most of us then you can also get a no exam life insurance plan that you’ll get approved for in minutes and even get your policy delivered electronically.
Right Time to Buy Life Insurance
Delaying life insurance purchase is a huge problem and often times a costly mistake. So how do you know when is the right time to purchase life insurance? Well, the easy answer is, if you have anyone depending on you whether its children, partner, parents or anyone else then it is time you secure a life insurance policy. Think of it as an income protection policy if you die because if something did happen to you then your loved ones would receive funds to continue their lifestyle as if you were here.
Keep it Simple
When it comes to life insurance options there are many and you may have already encountered term life, whole life, universal life or any other kind of life(not an actual product). You may have even been shown an illustration with a life insurance policy that will generate you fortunes in cash value. Well, we’re here to tell you that life insurance is typically not a great investment unless you maximized your Roth IRA or 401k and your fee-only advisor thinks is a good way to go. Here at InsureChance, we always tell our clients if the product seems confusing to you don’t buy it. Not understanding these policies is not your lack of knowledge, is simply the way they were designed to so don’t beat yourself up. Life insurance is designed to protect your loved ones so let’s keep it that way and not turn it into an investment vehicle when they are 1000’s of options to grow your money. Here is a link of an article our CEO Mack Dudayev wrote that was featured in an industry publication so click here.
Let us Help!
This summarizes the entire process of how to buy a life insurance policy. Depending on your circumstance and the company you choose, it can take between 3 to 6 weeks to get approved for life insurance, but if you need to buy a policy faster than that we may have a few companies that can approve you in 24 to 72 hours. Just remember to work with an independent agency that will help you get the best plan and makes a life insurance purchase a breeze.
