Buying life insurance the traditional way can seem old-fashioned when you order everything else with the push of a button and get it quickly. The traditional way of getting insurance inexpensively involved filling out paperwork, taking a medical exam, and waiting several weeks to get your policy. But that’s changing as more companies make it faster and easier to get insurance. It doesn’t take very long to apply online, and many people do not even need to have a medical exam.
Do Your Research
Before applying for a policy, do your research to make sure you know what you’re getting into. The two main categories of insurance are term and permanent coverage. A permanent policy covers you for your whole life while term insurance offers coverage for a certain amount of time. You’ll also want to decide on your coverage amount. How much will your beneficiaries need after your death?
Consider your assets when deciding how large of a policy you need. Someone who has fewer savings may need a larger policy to support their dependents. You should also research what a cash surrender value of a life insurance policy is. This is the accumulated portion of the policy’s cash value that is available to you if you surrender the policy. Depending on how old it is, the cash surrender value may be less than the cash value.
Applying for Insurance Online
You’ll go to the provider’s website and answer some questions about your health, such as your height, weight, and lifestyle habits. It can be tempting to lie and suggest that you are healthier than you are. But if the company finds out, they might deny coverage or decline a payout to your beneficiaries after your death.
Lying can also result in you being red-flagged. That means that other insurance companies will find out you didn’t receive coverage because you lied on the application. Some people may have to take a medical exam if they have health issues, but not every company requires this. If you do have to take an exam, you might see the final price once the medical exam results are back.
After the Application
An underwriter at the company will review the application and a medical exam, if applicable. They might contact your physician to get medical records to find out about any conditions or treatments you received. This will help them decide if you represent a financial risk to the company and how much your coverage should cost. Once they receive the medical exam and application, the company can deny or approve the request to get coverage.
Improving Your Life Insurance Premiums
Your medical history and age affect the premiums, and while you can’t do anything about those, you can take some steps to improve your lifestyle choices. For example, if you stop smoking, you might live longer, so the company will have longer to collect the payments before they have to pay your beneficiaries. Consider improving your driving as well, since moving violations can increase your monthly payments.