The best wy is to sit down with a local independent life insurance agent and discuss your individual situation. The agent knows the plans available and can help you put together a plan that is affordable and covers your needs. This is hard to do online or through the mail or even over the phone.
The first consideration in purchasing a life insurance policy is to determine what planning goal you are attempting to achieve: indemnification, income or inheritance. Indemnification can be temporary or permanent. If the economic liability is temporary then term life insurance which (depending upon your age) can be purchased up to 30 years. If the economic liability is permanent then guaranteed universal life can be purchased to age 121.
Income and inheritance planning goals require permanent life insurance policies. Income goals with life insurance are generally considered because of the tax advantages and crediting method options: For market risk investing, variable universal life insurance. For domestic and foreign indice investing, indexed universal life. For interest rate investing, current assumption universal life insurance or participating whole life insurance. For inheritance, guaranteed universal life (GUL) insurance for singles and GUL survivorship for couples.
To buy life insurance, you must first pick out what type of policy and face amount will work best for you. Applying for life insurance requires an agent, so you will want to call a trustworthy website or local agent to help you in that decision. A good agent will also ask you a battery of health questions to find the company that will give you the best price.
Once your application has been completed and your agent has submitted it to the life insurance company, you are in the underwriting stage. If you took a No Exam policy, this stage could only take a couple of days or weeks. If you chose a medically underwritten policy, the underwriting process could take several weeks or months. The latter will require a paramed exam to be done in your home or other location of your choice, and the exam usually entails a blood test and urine test. The underwriter might also order your medical records.
Once the underwriter has reviewed your info, he/she will approve you at the rating that your health and other risk factors indicate per their guides. It is possible to be declined at this stage, but not common. We inform our clients of the approval and allow them to make changes to the policy if desired; other agencies mail the policy to you as is and you can accept or reject it.
You always have a month "free look" to read your policy and decide if you want to keep it. You accept it by paying for it. With a good agent, good advice, and good groundwork done ahead of time, most people end up with a good policy and are happy to have taken care of that important task.
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Income and inheritance planning goals require permanent life insurance policies. Income goals with life insurance are generally considered because of the tax advantages and crediting method options: For market risk investing, variable universal life insurance. For domestic and foreign indice investing, indexed universal life. For interest rate investing, current assumption universal life insurance or participating whole life insurance. For inheritance, guaranteed universal life (GUL) insurance for singles and GUL survivorship for couples.
Once your application has been completed and your agent has submitted it to the life insurance company, you are in the underwriting stage. If you took a No Exam policy, this stage could only take a couple of days or weeks. If you chose a medically underwritten policy, the underwriting process could take several weeks or months. The latter will require a paramed exam to be done in your home or other location of your choice, and the exam usually entails a blood test and urine test. The underwriter might also order your medical records.
Once the underwriter has reviewed your info, he/she will approve you at the rating that your health and other risk factors indicate per their guides. It is possible to be declined at this stage, but not common. We inform our clients of the approval and allow them to make changes to the policy if desired; other agencies mail the policy to you as is and you can accept or reject it.
You always have a month "free look" to read your policy and decide if you want to keep it. You accept it by paying for it. With a good agent, good advice, and good groundwork done ahead of time, most people end up with a good policy and are happy to have taken care of that important task.