A pandemic is a time when many people become ill all at once. The Centers for Disease Control and Prevention (CDC) has declared a pandemic of the novel coronavirus, SARS-CoV-2. This virus causes severe acute respiratory syndrome or SARS. As more and more people are becoming aware of this virus and what it can do, they are looking for ways to protect themselves and their families. One way to do that is by purchasing a life insurance policy.
Who Needs Life Insurance?
Most people would benefit from having life insurance. Rosa says he typically recommends coverage to anyone whose death would financially impact another person. That can include a spouse, children, an elderly parent, or a business partner.
Many U.S. workers get minimal term life insurance coverage through a group policy sponsored by their employer. That’s a good starting point, but having an additional individual policy ensures you’ll be fully covered if you leave your job.
A permanent life insurance policy can protect your heirs and build wealth. Unlike term life insurance, which comes with lower premiums but expires after a set period, permanent policies contain a savings account that may be accessible during your lifetime.
The tax-free death benefit from a life insurance policy can help survivors cover funeral expenses, pay bills, and continue making progress toward their financial goals.
Many people don’t consider buying life insurance until middle age or later. But by then it can cost prohibitive because premiums are determined in part by age and health. You can often lock in a lower rate when you’re younger and healthier.
How To Buy Life Insurance?
Buying life insurance can be intimidating, but following these steps will make it easier:
- Calculate how much coverage you need. A policy worth 10 to 15 times your annual income is a good benchmark for coverage. If you think you may need more, a financial planner or fiduciary advisor can help assess your situation.
- Choose a policy type.
- Gather personal information (ex. proof of citizenship, identity, and income).
- Work with an independent broker like Policygenius to compare rates from multiple insurers.
- Complete the application and phone interview, where you’ll be asked about your health history, hobbies, and finances. This should take between 15 and 30 minutes.
- Decide if a no-medical-exam policy or medical exam policy is right for you.
- Wait for the underwriting results. Accelerated underwriting could get you approved for a policy in under two weeks.
- Decide if you need to add riders to your policy. It depends on financial factors like your asset and debt levels and your income. Life circumstances, including your relationship status, number of dependents, cost of living, and job, also play a role.
If your application is denied, your life insurance agent or broker can explain why. You may need to make lifestyle changes and reapply or consider alternative insurance products. If your application is accepted, you can sign the documents and pay your first premium.
Life insurance is something you pay for for years, if not the rest of your life. Make sure you’re getting the best deal on the policy that’s right for you by comparing rates from multiple companies.
What Companies Are Best?
There are many different life insurance companies, so it is important to compare rates before purchasing a policy. Some companies are more expensive than others, but that does not mean they are necessarily the best. It is important to consider all factors when choosing a life insurance company.
Here are some things to look for:
- Financial stability: The company should be in good financial standing and have a good rating from independent agencies like A.M. Best.
- Customer service: The company should have responsive customer service representatives who are easy to work with.
- Claims process: The company should have a simple claims process that is straightforward to understand.
- Pricing: The company should have competitive pricing for the type of policy you are looking for.
When choosing a life insurance company, it is important to compare rates and consider all factors before making a decision. Policygenius can help you compare rates from different companies and find the best policy for your needs.
What’s Next?
Now that you know more about life insurance, you can start shopping for a policy. Remember to compare rates from multiple companies before making a decision. You can use Policygenius to compare rates and find the best policy for your needs.
If you have any questions about life insurance, our team of experts is here to help. Leave a comment below or give us a call at (800) 339-4112. We’re here to help you find the best life insurance policy for your needs.
Thank you for reading! We hope this article was helpful. If you have any questions about life insurance, our team of experts is here to help. Leave a comment