Life insurance isn’t much fun to think about, which is one of the reasons over 40% of Americans don’t have any coverage. After reading this post you will know how Life Insurance Online Application works and how to apply. However, life insurance is a key part of a sound financial plan and protects your family if a caregiver or income provider passes unexpectedly.
Consider this: What would happen if you were to be diagnosed with a terminal illness, or if you were involved in a fatal accident? While those types of situations aren’t exactly something you really want to think about, it could happen. And what type of situation would your loved ones be in if you were to die unexpectedly? If they are dependent on your income, if they have to pay your debts, or if they have to cover the cost of your final expenses, they could end up in a serious financial situation. In fact, they could end up being destitute.
You definitely don’t want your spouse, children, or any other person who is financially dependent on you to suffer if you give a ghost. That’s exactly what life insurance is for. While there’s no amount of money that could ever replace you, the payout from a life insurance policy could certainly make their loss of you a lot easier to navigate.
If the idea of sitting down with an insurance agent doesn’t sound appealing to you, you’ll be happy to know that you don’t have to! You can purchase a life insurance policy without consulting with an agent! To learn more, keep on reading.
Term Life vs. Permanent Life Insurance Online Application
No matter what type of insurance you purchase, you’ll need to follow all of the steps listed below. However, there are some differences in the application processes for term life insurance and permanent life insurance, such as whole life.
Because term life insurance has no cash account (the part of a permanent policy that gains value over time), you won’t need to answer any financial questions beyond who gets the benefit of your policy when you die.
Permanent policies are more complex financial tools. They change in value over time, either at a fixed rate or through investments that can rise or fall. As a result, when you’re applying for a permanent life insurance policy, you’ll need to answer some additional financial questions.
Depending on the product you’re applying for, you’ll need to choose ways to take loans from your cash account, decide whether to have your death benefit include the cash account, choose how to divide premium payments among investment accounts or certify that your seller presented a prospectus. There may be additional questions regarding your financial fitness, as well.
How To Apply For Life Insurance Online
Life Insurance Application Process
Life life insurance application process is easy to follow and will help ensure that you are getting the very best life insurance policy for your needs. Here’s a breakdown of what you can expect:
- Get a quote. You can request a life insurance quote online or over the phone simply by telling the company a little bit about yourself.
- Speak with an agent. You’ll need to answer questions about your medical history and other factors that may affect your life insurance quote. The call regularly won’t last more than 10 minutes, and when it’s over, we’ll recommend a life insurance policy that fits your needs.
- Complete an application. After you choose a life insurance policy, you’ll complete a full application that will provide us with needed information to approve your coverage.
- Take a medical exam. The life insurance medical exam is used to determine your eligibility and finalize your rate. You can choose the time and place for this exam, and a qualified nurse will come to you. The medical exam is simple and shouldn’t take more than 30 minutes.
- Underwriting begins. Underwriting is the process in which the review your application and assess your insurance risk. Be patient in this stage; the process may take a few weeks.
What Could affect Your Life Insurance Premiums?
- The length of policy and amount of coverage you need
- Your age
- Your physical and mental health
- Tobacco use
- Your driving record
- Your travel plans
- Your family medical history
- High risk activities like skydiving, flying a plane or bungee jumping
What to Expect After You Apply
When your policy is approved, it is placed in force and you will be notified, and receive a full copy of the policy.
If you didn’t already provide your agent with a deposit, you’ll be asked to make the first premium payment.
Some insurers may allow you to make your first payment to bind your policy upon submission of your application (prior to your medical exam). The insurer reserves the right to cancel the policy or increase your premium if your exam reveals previously undisclosed medical conditions, however.
Either way, be sure to ask when your policy will be effective – especially if you’re replacing an existing policy. Don’t cancel the old life insurance before you’re sure the new policy is in effect!
The agent will send you a hard copy of the policy. You should make a copy of this policy, place the original and the copy in different spots for safekeeping, and tell your spouse where they are. Finally, you can relax knowing that one of the most important pieces a solid financial plan is in place for you and your family.
That’s it! Although it seems like a lot, the process of buying life insurance can be easier than you think. Scheduling the medical exam and waiting on the results are the only real hassle.
Conclusion On Life Insurance Online Application
Buying life insurance doesn’t have to be difficult anymore. Know that you’ll likely want term life insurance, not whole life insurance. And when looking for life insurance, aggregators like Policygenius can help you get quotes for term life in just minutes.