Life insurance is a crucial aspect of financial planning that provides peace of mind to you and your loved ones. Here are the steps to purchase and own life insurance:
Determine your coverage needs: The first step is to determine how much coverage you need. Consider factors such as your income, debt, and the number of dependents you have. You can use online calculators to estimate your coverage needs. I use a formula called DIME which stands for Debt, Income, Mortgage, and Extra Expenses like a young dependent's future college fund.
Choose a type of life insurance: There are two main types of life insurance - term life insurance and whole life insurance. Term life insurance provides coverage for a specified period of time, while whole life insurance provides coverage for the duration of your life. Choose the type of insurance that best suits your needs.
Shop for life insurance policies: Once you have determined the type of insurance you need, you can begin shopping for policies. You can do this by contacting insurance companies to be put in contact with an agent or reach out to one of our specialists. Compare policies from different companies and choose the one that best fits your budget and coverage needs.
Fill out an application: Once you have selected a policy, fill out an application. The application will ask for personal information, medical history, and other relevant details. Be sure to provide accurate information to avoid any issues with your coverage.
Underwriting process: After you have submitted your application, the insurance company will go through an underwriting process to determine your eligibility for coverage. This may include a medical exam, request for additional information, and a review of your financial records.
Acceptance and payment: If your application is accepted, you will receive a life insurance policy and a bill for the premium. You can choose to pay the premium monthly, quarterly, semi-annually, or annually.
Regular premium payments: Once you have purchased your life insurance policy, you will need to make regular premium payments to keep your coverage active. It is important to keep your policy in force to ensure that your loved ones receive the benefits in case of your death.
By following these steps, you can purchase and own life insurance and protect your family's financial future. Be sure to regularly review your coverage needs and adjust your policy as necessary.
If you have an existing policy and need to make changes reach out to the agent who delivered your policy or contact us to book a complimentary life insurance review.