If you’re like most people, life insurance is something that is often talked about, but rarely purchased. With the right knowledge and support, however, you can ensure your family is taken care of when it matters most.
If you’re trying to decide on life insurance, it’s time to stop weighing your options and make a smart decision. To help you do this, here are some things you should know about buying your policy online today:
Determine coverage needs
When determining your life insurance needs, you’ll want to consider factors such as your age, income, and debts. You should also consider what expenses your family would be left with if you passed away, including funeral and burial costs.
Determine coverage type
Life insurance policies typically fall into two types: term or whole life. A term policy provides a death benefit only during a specified period (usually 10 to 20 years), while whole-life plans offer lifetime protection regardless of when the policyholder dies. Whole-life is typically more expensive because it offers more benefits than a term plan would–but both options have their advantages depending on your needs and goals.
Determine coverage amount
Income is the most important factor in determining your life insurance needs. One estimate of coverage needed is multiplying your income by 10. This gives one’s spouse and/or dependents time to grieve and adjust to unexpected loss. For example, if you make $100k in annual income, you might look for $1,000,000 in coverage.
debt: If you’re carrying debt, such as credit card or car loans and mortgages, you should consider covering the amount with life insurance. The best way to do this is by buying a term policy that’s equal to the amount of debt you have.
Final expenses: Final expenses are the costs associated with your death. They can include funeral expenses, burial or cremation costs, probate fees, and estate taxes. The average funeral costs $10k. Final Expense insurance is specifically designed for this coverage with amounts often between $5k to $40k.
Get quotes
When you’re looking for life insurance, it’s important to consider a few options. You might want to get quotes from insurers you already have policies with to bundle together and save money on your premiums. While evaluating quotes, however, avoid comparing apples to oranges. Get quotes with the same terms (i.e., the same amount and type) so that you can make an informed decision about which policy is best for your needs.
You can start now with a free quote for life insurance with Ethos. Apply online in just minutes with same-day coverage available.
Complete the application
The next step is to complete the application. You will be asked for personal details, such as:
* birth date
* contact information
* social security number
* driver’s license number and/or passport number
* bank account number; debit/credit card number
When completing the application for life insurance online, make sure everything is truthful and accurate, to the best of your knowledge, so that there are no surprises later on down the road if something does come up during underwriting or claims investigation processes!
medical questionnaire
As part of the application process, you’ll need to answer several questions about your health history and medical history. This will allow companies to determine whether they feel comfortable offering coverage, and how much they can charge you in premiums based on your risk level.
medical exam option
When purchasing life insurance you will have the option of taking a medical exam. The purpose of this is to better determine whether or not you are in good health and how much risk the carrier is prepared to insure.
If you’re applying for certain products, or amounts of coverage, a medical exam could be expressly required. If required, you’ll have to visit with an examiner at a carrier-approved facility before you can qualify for coverage.
If you don’t want a medical exam, No Exam life insurance is a good option.
After application decision
When you get your approval, electronically-sign your policy documents and designate the beneficiaries you want to receive your policy’s payout when you pass away. You’ll also pay the premium either monthly, quarterly, semiannually or annually.
Final thoughts
Ultimately, purchasing life insurance is a product decision and is not an easy one. You need to understand your own needs and goals, as well as the needs and concerns of those you’re planning to leave behind. But keep in mind that no matter what choice you make, getting life insurance shouldn’t be an insurmountable task. It can be a rather smooth process if you prepare, ask the right questions, and get informed.
*Disclaimer statement:* Please be aware that the information provided in this blog post is for general informational purposes only and should not be considered as professional financial or tax advice.