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.
- Find term life insurance that fits your needs.
- Request and fill out an application (can obtain from your insurance agent or do this ON-LINE)
- 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).
- Your application is either accepted or denied.
- 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.