Life insurance is not for you—it's for your family.
Providing a life insurance policy is one of the simplest and best ways to protect and care for your loved ones. A good policy provides enough to cover final expenses, pay off debts, and perhaps even invest for the future, an important consideration for those with young children.
Unfortunately, when times are tough and money is tight, obtaining proper life insurance may not be a priority. Many people wait to purchase until after something happens to cause them concern, such as an unexpected health incident. At that point, it can be nearly impossible to purchase life insurance, and even if it is available, it will often cost much more. For that reason, it is recommended to obtain coverage as early as possible, to qualify for the best rates.
If you’ve been putting off getting life insurance, now is the time to take action. The process is not as complicated as you may think. Here are the steps you’ll need to follow:
- Speak with an agent. Licensed professional insurance agents will guide you in the type of policy you should purchase and help determine the right amount for your financial circumstances, as well as your family’s needs. In determining whether you need term or permanent life insurance, your agent will ask several questions. For example, are you looking for coverage for final expenses, debt protection, your children’s future needs, etc.? Do you want to replace your income for a few years to cover expenses so your surviving spouse has time to grieve without having to worry about ongoing bills? To help you decide the right coverage amount for your needs, try one of our insurance calculators.
- Request a quote. When comparing quotes, make sure you compare the same benefits including coverage amount, type of policy, rating of the company, and any additional coverages. It’s best to work with a provider who will shop various companies to search out the best price on your behalf. Request a life insurance quote from AGFinancial Insurance Solutions.
- Apply for coverage by completing an insurance application. The application will ask you for personal information regarding financial and health history. This information will be compared to what is given at the time of a medical exam, the next step in the process.
- Complete the medical exam. Most insurance carriers will pay for you to be examined by a health professional in order to confirm the information on the application and to have an accurate evaluation for the underwriter. The exam is usually done by an independent third party to assure unbiased evaluation and is commonly called a paramedical exam. It may take place in your home or office or at a medical facility.
- Be patient and wait. The insurance company will obtain your medical records, do a credit check, and review your application. Once the underwriter has reviewed the information, they will contact your agent to let them know whether the application is approved and at what rating. The rating is the class of risk you’re given based on your health data. For example, “preferred” would indicate lower risk, and “standard” would indicate a higher risk. The better your rating, the lower your premiums are likely to be.
- Accept or decline the policy. When the policy has been approved, it is now up to you to accept or reject it. If something showed up in your medical or financial history to increase the premium, you have the option to decline the policy.
- Final step: fund the policy. If you accept the policy, the final step in the process is to pay the premium. You’ll be sent a copy of the policy to keep. Once the insurance company receives the premium, your policy is in force. As long as the premiums are paid on time, the policy is yours for as long as the term you agreed to pay. If you decide to terminate the policy, a letter to the agent or insurance company asking for termination of coverage should be sufficient to cancel the policy.
Taking time to plan for the unexpected now is not just a smart decision; it can also save your loved ones much unnecessary financial stress later. To learn how you can get a policy customized to your needs, call AGFinancial Insurance Solutions at 866.662.8210 to speak with one of our life insurance consultants.