Sunday, September 30, 2012

Step By Step Guide On How To Obtain Life Insurance


One of the primary motives why people acquire a insurance policy is the assurance that their dependents will get a prearranged sum of money in the event of their death. Getting a policy is crucial especially if you are the main source of income in your household or family. Apparently, the demise of the breadwinner signifies the loss of income for the family. As they say, life insurance is something that you need to obtain, but hopefully never have to use.

Guide on how to purchase a life insurance:

1. Determine the kind of policy that suits your needs

Term and whole life plan are the common types of policies that you will encounter as you begin shopping for a policy. Term life insurance expires for a definite period of time, such as 10 or 20 years. Conversely, whole life plan covers the policy holder until death. Your choice of policy should be hinge on your personal needs. You may prefer whole life plan or merely need a life plan for 20 to 30 years while rearing children.

2. Search out for free life insurance quotes

Internet has helped buyers get free online quotes without difficulty, but it is still advisable that you seek for the opinion of proficient insurance agents in your community. They can help you understand life plan even more, present you a wide range of options and provide you answer to your queries about certain policies that you cannot access from online quotes. Moreover, try to check with your human resources department at your job to recognize the life insurance options offered there.

3. Fill out the application form

Once you have made up your mind on which policy or insurer you want to choose, you can now start applying for a life plan. This necessitates a preliminary application that will also include few questions concerning your present and past health condition. Insurers make use of the information supplied on the form to help them in creating a policy.

4. Go through a medical exam

Most reputable insurers compel applicants to undergo a medical exam completed before they approve your application. Normally, this test should be paid by the insurance company, which utilizes it to confirm the information on your health history.

5. Understand the premium and coverage before buying it

After taking you medical exam, the insurer will design a policy for you that stipulate your coverage and indicates how much premium will be charged to you. You should get through the policy documents right before you sign it to verify if it suits your needs at a price you can afford.

6. Sign the policy and pay the premium

Lastly, sign the policy papers to obtain insurance coverage and pay the premium. Once you have completed these steps, you already have a life plan that will protect your dependents in case you die.

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