Insurance

The Details Behind Term Life Insurance Application Process

Many people may know that they need term life insurance, but they do not clearly understand how the process works.  In the presence of unanswered questions, many people make a choice (a poor one) to do nothing.  My hope is that this post will help answer your questions about the term life insurance application process!

Acquiring term life insurance generally follows the following steps.

  1. Find term life insurance that fits your needs.
  2. Request and fill out an application (can obtain from your insurance agent or do this ONLINE)
  3. A nurse contracted by the life insurance company will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).
  4. Your application is either accepted or denied.
  5. If accepted, you will be provided your actual premium rate cost and the policy will go into effect once payment is made.

NOTE #1: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.

NOTE #2:  I carry 10 times my annual take-home pay in term life insurance in 20 or 30 year level term coverage.  For example, if a person makes $30,000 in annual take-home pay, then that would be $300,000 in term life insurance coverage.

Lack of Understanding Can Cost You Big Time!

Do you understand insurance? Life insurance? Auto Insurance? Health Insurance? I know that it is certainly not the most interesting subject in the world, but if you do not take the time to truly understand these products, it will cost you big time.

Rules I follow when purchasing insurance:

  • Do not just “take an insurance agent’s word for it!” Truly seek understanding of the product! If you understand it, you will be able to make a good purchase that you will KNOW is a good purchase.
  • Understand what’s being offered  If you are speaking with an insurance agent, and you start feeling like you are being “sold” on a product – LEAVE IMMEDIATELY!!! Use Donald Trump’s words – “You’re fired!” Complete with the New England accent if you wish. You do not need to be sold on an insurance product, you need to understand the insurance products. Once you understand the products, you will be able to make a sound decision.
  • Obtain at least three quotes from three different companies. Ensure that at least one is an independent company that is able to surf your insurance needs among many different companies. Competition makes prices go down. When prices go down, you will get to keep more of your money. I use US Insurance Online to obtain dozens of quotes without calling anyone – they call and email me quotes from multiple insurance companies!
  • Do not cancel an existing insurance product until you have obtained a replacement. Do not cancel your auto insurance before you have obtained auto insurance from another company. Do not cancel your life insurance before you have obtained alternative life insurance from elsewhere. A gap in coverage is ripe territory for Mr. Murphy to show up.
  • Do not allow your insurance to be combined with another financial product. For example, cash value life insurance is both life insurance and an investment in one product. The problem with these types of products is that the fees are tremendous. Purchase your investments and insurance separately.
  • Send out your insurance every two years for new quotes. You want to ensure that your rates are remaining competitive with the open market.
  • Ask for a better deal. Insurance is a service product. Prices of service products are negotiable.
  • Be extremely careful when purchasing insurance from a family member or a good friend. You may have your judgment impaired because you really want to please and help them.

Again, insurance may be a boring subject. If you kept reading all the way to the end of this article, I am impressed! You can save a lot of money on insurance by employing these tips.

I personally use US Insurance Online to obtain quotes because it allows me to shop and compare without calling anyone!!!  Check their website out HERE.

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Term Life Insurance Application Process – How It Typically Works

Many people may know that they need term life insurance, but they do not clearly understand how the process works.  In the presence of unanswered questions, many people make a choice (a poor one) to do nothing.  My hope is that this post will help answer your questions about the term life insurance application process!

Acquiring term life insurance generally follows the following steps.

  1. Find term life insurance that fits your needs.
  2. Request and fill out an application (can obtain from your insurance agent or do this ON-LINE)
  3. A nurse contracted by the life insurance company will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).
  4. Your application is either accepted or denied.
  5. If accepted, you will be provided your actual premium rate cost and the policy will go into effect once payment is made.

NOTE #1: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.

NOTE #2:  I carry 10 times my annual take-home pay in term life insurance in 20 or 30 year level term coverage.  For example, if a person makes $30,000 in annual take-home pay, then that would be $300,000 in term life insurance coverage.

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Disclosure

Stop And Think Moment – 1

Welcome to the latest series at JosephSangl.com – “Stop And Think”  This series is written to help people think through important financial topics that may not be part of daily conversation, but are vitally important to a complete financial plan.

Take one minute to stop and think about what would happen if you died today.  I know this is not an exciting prospect to consider, but I have seen many instances (far too many) where a family member dies way too young.  Would your family be able to make it financially?  Do you have life insurance that would provide enough money to ensure that those who depend upon you could just focus on grieving instead of having to worry about keeping the house and not being able to pay the bills?

I personally carry 30-year level term life insurance.  It’s very cheap and allows me to absolutely ensure that my family will prosper should I die prematurely.  Just so you know, I’m rooting against dying early.

One great thing about term life insurance is you can securely obtain quotes on-line without talking to anyone.  I love that!

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Disclosure

Carbonite.com – Is It Worth It?

I remember the first time I got digital pictures – it was when my daughter was born in 1999.   I had my film developed at Wal-Mart and then scanned the pictures into my computer.   Within hours of my daughter’s arrival, my entire family throughout the world was able to see pictures of our beautiful baby girl!   The technology!!!

Then I received a digital camera for Christmas from my twin brother.   I think it was a 0.5 MP camera.   Then I got another, better, digital camera.   Then another.   Then my phone had a digital camera.   Then my daughter got a digital camera.

All of this added up to THOUSANDS of priceless photos on my computer.   Not to mention all of our other important documents we’ve stored on the computer.

When a buddy recently LOST all of his files – all of his pictures, movies, iTunes music, and more – I determined to do something about it.

I had heard talk radio show hosts mentioning Carbonite.com as a way to automatically back up files.   I decided to check it out in August.   They have a FREE TRIAL that allowed me to sign up and try it out without even giving them my credit card info.

Bottom line is: I LOVE IT!   So much so that I have put it on my home computer and work computer.   My team has put it on their computers.   In fact, one team member recently got a virus and had to wipe the hard drive clean – then they just used their Carbonite backup to get up and running again!

Here are some things I have noticed:

  • It WILL slow your computer down a little when it is backing files up, but all I have to do is click “pause” and it will wait until a later time to back-up.
  • I can easily see which files are backed up and which ones aren’t simply by checking my “file explorer” – files that are backed up have a small solid green dot – those that aren’t have an orange dot.
  • When I signed up my one computer for the free trial and then paid for the service to continue, I received a 50% off offer for it to be installed on a 2nd computer – I used this for my home computer.
  • It takes some time for the first back-up.   It took Carbonite about a week to fully back up all of my files the first time.   Now it does it in minutes.
  • The cost is worth it to me.   It costs around $55/year.   If I lost those files, the cost is much MUCH greater!   I actually group this cost in with “insurance” – as it is insuring my data and pictures against loss!

You can check it out HERE.

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