If you're shopping for your policy, there are essential steps you need to consider to get the right plan. Read below:
1. Evaluate How Much Insurance You Should Buy
The purpose of life insurance is to give your dependents a fulfilling life after you die.
You don't want your spouse and kids to struggle with the cost of living.
Firstly, calculate your expenses and make future projections. Factor any debts you have and approximate the cost of education for your kids among other costs.
To make life easier, you can use our Life Insurance Calculator to determine this figure.
2. Get a Quote
Shop around for life insurance companies and get a quote from each. See if there is life insurance calculator on their websites and use it to get a price estimate.
You will need to provide your personal information like age, gender, location, and brief medical history. Once you have the quotes, compare them and pursue the carriers with the fairest and most reasonable deal.
Consult with the company on their application requirements and supply them. Your application can be much easier if you prepare the documents in advance. You will have to prove your identity, citizenship, right of residence, and age.
You will also have to present evidence of income. You can use a tax return, letter of employment, pay slips, or whatever the insurer advises. Your company or broker should guide you through the process.
4. Have a Medical Examination
Life insurance companies are keen on the applicant's health status. You will have to provide a medical report, so be ready for the examination.
5. Wait for Underwriting
The insurance company's underwriter will be performing a risk assessment on you as you wait for approval. The process involves counterchecking your medical report against what you provided. The company may scrutinize your medical history and health habits for as many as seven years.
6. Sign and Pay
Once underwriting is over, your life insurance policy is ready. You'll need to confirm the details, sign it, and make your first payment.