For many people, life insurance is a safety net. Most families purchase life insurance to ensure that a spouse, dependent children, or other family members are financially secure. As long as premium payments are made on time, a life insurance policy will guarantee a death benefit if the policyholder passes away. A death benefit will be paid to designated beneficiaries and can be used to cover final expenses, pay off debts, provide supplemental income, or take care of other financial responsibilities. Life insurance provides peace of mind and guarantees that loved ones aren’t financially burdened in the aftermath of a death.
While many people understand the benefits of life insurance, determining the type of policy and the amount of coverage you need can be difficult. In general, term life insurance and whole life insurance are the two types of policies. Term life is valid for 10, 20, or 30 years and typically provides coverage for a mortgage or dependent children. As a result, term life insurance is usually cheaper and more popular. By comparison, whole life coverage is a permanent insurance policy that will last as long as premiums are paid. Whole life insurance can also earn a cash value and serve as an important part of a family financial plan.
No matter what type of insurance you choose, the ultimate goal is to leave a guarantee for your beneficiaries. Depending on your policy, however, you could pay significant monthly premiums. If you are interested in finding quality coverage at an affordable rate, you should shop around for quotes. A company like SelectQuote will allow you to find online life insurance quotes from many reputable companies. Let’s take a look at the steps for getting life insurance online.
Provide personal information.
Once you are ready to shop for different types of life insurance, you will need to provide some basic personal information. Information such as your name, phone number, address, date of birth, and email is necessary. This information gives insurers your contact information and lets them locate insurance products available in your area. Your birthdate will be particularly important as your age is a major factor when purchasing life insurance. You might also need to provide your driver’s license number, social security number, and financial information. Once you have provided some basic information, the insurance exchange company will shop you around to life insurance providers.
Compare policy and rate information.
Once you have received life insurance quotes from multiple companies, you will be able to compare coverages and premium amounts. Insurance companies evaluate several factors to determine risks and set premium rates. Everything from your age and medical history to your gender and occupation will influence your rate. Different insurance companies use various formulas to determine how certain conditions impact rates. Based on your specific situation, you will be able to compare coverages and premiums from several top-quality insurance providers. This will allow you to select the best policy and price for your needs. Once you have selected a policy, you will need to secure coverage with the company.
Secure a specific plan.
Once you pick a specific plan, you will secure coverage through the insurance company. During this process, some life insurers will want to know more about your medical history and other aspects before underwriting. You may need to complete a medical exam before you can secure coverage. Once you have completed the process, you will set up your financial information and designate beneficiaries.
Getting life insurance will give you peace of mind that your family has money to pay off debts or provide for their needs should something happen to you. Shopping around for insurance quotes is the best way to find the right coverage and policy rates for your needs.