The Life Insurance Buying Process

Another Great TEDMUS TIP: 12/4/2013

WHAT ARE THE LIFE INSURANCE BUYING STEPS?

When you buy life insurance, there are several steps to go through:

1. CHOOSE THE LIFE PRODUCT THAT IS BEST FOR YOU AND/OR YOUR FAMILY.  Perhaps it’s whole life or term - or a combination of the two. Your budget, age, health, and death benefit needs should all be taken into consideration.  Your agent can/should help you with this. 

2. COMPLETING A LIFE INSURANCE APPLICATION. Typical life insurance applications can be lengthy - some can be up to 30 pages in length and have confusing questions. Talk with your agent if you get confused here. Once the application is complete, send it back to your agent.

3. PARAMEDICAL EXAM. Depending on your death benefit, you may have to go through a paramedical exam.  Blood, urine, and vitals are typically ordered with life insurance. Other additional medical screening tests may be ordered if you have a larger death benefit need.

4. UNDERWRITING. Most of the time, a life underwriter will go through your submission to see where your ‘rank’ in terms of being a ‘risk’, i.e. Preferred Best, Preferred, Standard, Non-standard, etc. Depending on the complexity of the application, this process can take a couple of weeks to complete.  Your medical records may be reviewed and requested in this process.  Your agent should be in communication with you during the process.

5. DECISION.  Once the underwriter responds, you can decide to purchase or not purchase the life insurance.

6. REVIEW AND REEXAMINE YOUR NEEDS PERIODICALLY.  It’s always smart to review your life insurance needs on a future basis. The market is cyclical, just like anything else. Again, your agent should consult and help you in this process.

For more great insurance tips, check out our website at www.tedmusinsurance.com or call us at 800 903 5752.