How to shop for life Insurance coverage
You’ve put it off for long enough. You know the value of taking care of your family by purchasing a life insurance policy. At the same time, you’re unsure about shopping for life insurance. It might seem complex – but it doesn’t have to be.
For most people, the biggest step in buying life insurance is deciding to get covered. Once you’re ready to start shopping for life insurance quotes, the process is relatively easy. These simple steps can make it even smoother.
Step 1: Determine how much coverage you need
Life insurance comes in a variety of coverage amounts – from a few thousand dollars to $1 million or more. A general rule of thumb is to buy seven to 10 times your income in coverage, but everyone’s needs are different. The right number depends on what’s important to you and your family.
Here are some things to consider:
- Do you want to leave behind enough money to pay off a mortgage and other debts?
- Do you need a financial cushion to pay for your child’s college expenses?
- Do you need enough coverage to ensure your loved ones can live the same lifestyle over the next 10 years? Twenty years? Longer?
- Do you want life insurance to accomplish other goals for you, your business, or your loved ones?
Our life insurance calculator can help you decide how much life insurance to purchase.
Step 2: Learn about the types of life insurance
Choosing the best kind of policy for you is an important step in getting covered. Shopping for term life insurance is a bit different than shopping for whole life insurance, for example.
eFinancial offers a range of policy types to meet your needs, including:
- Term life insurance is the most affordable type of coverage and the best fit for most families. It remains in place for a specific period of time, typically anywhere from 10 to 30 years.
- Permanent life insurance, just like it sounds, provides permanent coverage for as long as you continue to make payments on the policy. It also comes with a savings component you may be able to borrow from during your lifetime. It’s more expensive than term life, but can be right for people with lifelong needs. Whole life is the most common type of permanent life insurance, and other options include universal life and variable life.
- Final expense insurance, sometimes called burial insurance, is a policy intended to cover end-of-life costs. Designed for people 50 and up, it offers a guaranteed payout of up to $35,000 and easy approval.
If you’re unsure, that’s okay. Your insurance agent can answer your questions about these types of policies to help you find the right fit.
Step 3: Shop for the best option
When shopping for life insurance rates, take the time to compare costs. Getting quotes from different insurance providers gives you insight into the options out there and can help you feel confident you’re getting the best deal.
eFinancial can help. We work with top-rated companies to make it easy to shop, compare, and buy a variety of term life insurance and permanent life insurance plans in one spot. That way, you don’t have to worry about visiting multiple websites or going through lengthy sales processes to get the information you need.
When it comes to what to ask when shopping for life insurance, our team is always available to help you. There’s no pressure, but plenty of info. Even better, we can help you get life insurance quotes right here on our site in under a minute – just in case you’re ready to see your options right now.
Step 4: Complete an application
Ready to buy? The next step is completing an application with the insurance company. You can do it over the phone with eFinancial in about 30 minutes, and coverage often starts the same day. During the application, you’ll need to provide:
- Your date of birth
- Height and weight
- Income
- Doctor names and phone numbers
When you apply, you’ll be asked about any potentially risky occupations or hobbies, along with any health issues. This may include things like working a dangerous job, skydiving, or having a condition like heart disease or diabetes.
After applying for coverage, you may need to complete a medical exam. eFinancial can often start your coverage the same day, without the need to wait for that exam. Once you wrap up your exam, you’ll be officially approved and receive your final rate.
Step 5: Choose your beneficiaries
You’ll also need to list your beneficiaries, or the people who will receive your life insurance payout if you die while that policy is in place. You may be able to change these designations over time if you decide to do so.
Have more questions about shopping for life insurance coverage?
It’s time to have some peace of mind. Once you complete this process, you’ll know there’s coverage in place for your loved ones. We’re here to guide you in that process. Give our team a call or see your personalized rate today.