September 19, 2020

Buying Term Life Insurance Part III: Get Qualified!

In previous articles we’ve touched on the concept of the Life Insurance Quote, what it is and what it isn’t. But, how are you supposed to get the best plan for you?

You need to get qualified. This means selecting a plan and going through the underwriting process. Until an insurance company reviews buy weed uk your “risk” and then says “yes, we’ll cover you, for this much money, for this monthly premium, for this length of time” and they say it in writing, all other efforts at shopping are really meaningless.

Getting Started
First, you’ll need to find a knowledgeable agent. You can do this by phone, online or in person if you prefer. You’ll want an agent that you can relate to and get along with. Remember, should the worst happen, this is the person who is going to help your family through the most difficult time of their lives. You want to feel good about them. It’s not necessary that they be located physically close to you or even in the same state, unless that is something that is very important to you. What is important, is that they know what they’re doing and show a genuine interest and concern for you and your family. Signing up for a “quote” online can actually help to connect you to an agent. Most “quote” websites require that you input your name, email address and phone number. That information is then sold as a “lead” to a licensed agent who will contact you to assist you and answer your questions.

Preferably, choose an agent who represents a number of companies and not just one. This might mean that your car or homeowner’s insurance agent may not be the person to help you. In general, agents who work for a single, brand name company selling car or homeowner’s insurance may not have access to the many high quality life insurance companies and low pricing that are available to an independent agent. Often, the same limitations may be true of a Life Agent who works directly for only a single insurance company.

Second, provide your agent will all of the pertinent information about you. Here’s what they’re looking for: Age, date of birth, height, weight, smoking status, medicines taken, medical history including a history of surgeries or hospitalizations. They’ll want to know if you’ve ever been declined or “rated up” for Life Insurance and if you’ve ever been disabled. You’ll also want to supply your occupation, income and mortgage amount (if you’re a homeowner) and mortgage/rental payments.

They’ll also ask you a number of detailed questions from the insurance application. It’s very important that you be totally transparent with your agent. Remember, he or she has your best interest in mind. Do not withhold information from them. It’s not unheard of for clients to omit an important detail, only to then have their application rejected by the insurer. Be candid with your agent so they can help you to get the best possible options available for your individual situation.

Tell them what the coverage is meant to do and make sure they know if you have any other coverage that is currently in place. You’ll want to provide a copy of that policy to your agent. Let him or her review it for you. It’s very common for a client to have a policy that they are depending on and yet not really know what that policy does and does not do. A Policy Review is a free service that your licensed agent will be happy to perform for you. If an agent suggests replacing a policy, know that they are required by law to replace it with coverage that is in your best interest and provides you something better than you had. In reality, most agents replace very few in force policies.

It might be hard, but grit your teeth and resist the urge to simply ask for a price. Good agents will help educate you about your options and the price range that may be available to you. Remember that, until an insurance company puts together a written offer of insurance for you (ie: a policy), any “quote” that you get is not guaranteed.

Paramed Exams
If your plan requires a physical exam, here’s what you can expect. They’ll measure your height and weight, blood pressure, pulse and respirations. They may take a blood and/or urine sample. In some cases they’ll even perform an EKG. This is all done in your home and will usually take about 30 minutes. The examiner will also ask you a number of health and lifestyle related questions. The cost for the exam is covered by the insurer, not you.


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