Term life is an extremely valuable resource for individuals who need it. If you have a family or outstanding debts, it is a good idea to have a term life insurance policy in place. The right type of life insurance will pay off any debts you may have and help secure your family’s future. Without your income, your family may not be able to live the lifestyle they have become accustomed to. Having a term life insurance policy in place will ensure they have the funds they need to get through tough times. With the funds from your life insurance policy, they can pay off any debts you left behind and have enough money to live on until they get back on their feet.
Do You Really Need Life Insurance?
Many people do not need life insurance. Either they have built their own wealth or inherited it. The majority of people, however, continue working to maintain the lifestyle they enjoy. For some, that can mean a modest amount of debt. Very rarely can people purchase their homes or vehicles outright. This is where term life insurance can really help. If you have a family, a quality insurance policy will cover their financial needs for several months or years after your demise and ensure they have what they need without struggling financially.
The following are the 7 steps you need to take while purchasing term life insurance:
1. Evaluate your coverage requirement
The first step is determining how much insurance you need to purchase and for what amount of time. Take a close look at the bills you pay each month. Look at how you and your family spend money on a regular basis. It’s also a good idea to look at what your future expenses may look like for the next five to ten years. Finally, ask yourself how much of a financial cushion you want to leave for your family until they can begin to take care of themselves. Your insurer will help you determine your insurance needs and how much term life insurance you should purchase to accomplish your goals.
2. Search for the right insurance agency
Determining how much term life insurance you need is only the first step. Next, you need to find an insurance agency you can rely on. Your insurer needs to be financially stable and provide you and your family with the kind of services you need. Financially stability means that the agency has a long-standing tradition of providing the highest quality of service to every client. Look for an agency that has been in business for many years and can support their claims of excellence with testimonials from satisfied customers.
3. Gather your medical records and other important documents
As soon as you decide on an agency, you will have to gather information related to your medical records, financial holdings, and any other information required by your insurer to create a term life insurance policy.
4. Decide on a purchase method
A level term life insurance policy can be purchased online without the services of an insurance agent. You do, however, have the option to purchase your policy through an agent. Keep in mind that your agent might try to convince you to buy a universal or whole life policy. Nonetheless, it is your decision! Choose the policy you feel more comfortable with.
5. Comparison shop
The next step is to shop around. Buying the first policy that sounds good may end up being a huge mistake. Most insurance agents offer policies from several different carriers. Compare term life policies from at least three or four other companies. This will give you a good idea of what you are looking at in terms of cost and actual benefits once the policy finally reaches its full term. If you need to, take a few days to consider the purchase before you sign on the dotted line.
6. Take your medical exam
After you apply for your term life policy, you will be asked to submit to a medical exam. This is part of the process, and almost every insurance provider requires it. Once your medical exam is complete, the results will be sent to your insurance company. Your agent will direct you through the next steps and get you signed up for your policy as soon as possible. They may also discuss possible lifestyle changes that will help you lower your premiums.
7. Make your final decision
The last step is to finalize your policy and set up your payment options. You can choose to pay by the month, quarter, semi-annually, or annually. Month to month is usually more expensive. However, if you choose to pay one lump sum every year, you may be eligible for a discount. It will also save you money over the term of your policy.
Understanding the process of buying term life insurance will allow you to make a better choice. You will be able to get the policy you need at an affordable price. Plus, you will be working with reputable agents you trust. Call our experts at John E. Peakes Insurance Agency today to find out how we can help you find the perfect policy. We will make sure that all of your questions and concerns are addressed before you finalize your policy.