So, you’re thinking about buying life insurance but you’re not sure what to expect when you go in to apply. Getting life insurance sounds like a complicated process. Understanding the process for obtaining life insurance can help you get the coverage you need at the best price for you.
First thing is to decide whether you want permanent life insurance, or term life insurance. The difference is that with permanent you are covered your entire life while term covers a set period of time.
Then comes figuring out how much your beneficiaries will need after you die. There are many factors used to determine what your beneficiaries will need. The age of your dependents, your spouse’s financial ability and your combined financial resources all must be determined so that a good figure can be arrived at.
There are questions that must be answered honestly when you apply for life insurance. They’ll want to know your height, weight and date of birth for starters. They will want to know about your lifestyle, do you smoke or drink, do you live a healthier lifestyle, the answers to these questions will all play a part in determining the premium.
There will most likely be a medical exam which is typically done at your home, office, or a clinic selected by the insurance company. There may also be more medical exams requested depending on your age and type of policy you want and the amount of coverage you’re seeking.
An underwriter will then review your application and medical exam. If you’ve lied about anything, here’s where it may be discovered. Once everything checks out, the application will either be approved or denied.
This is a simplified explanation of the process and it is important to note that the whole thing may take weeks to complete.
The life insurance application process is a straight forward thing, but sometimes further clarification or paperwork are needed to complete the package.