Four Steps To Success
Step 1 – Prioritize The Need
Life insurance is a need solution. Establishing and detailing the need is essential. Start with a budget that you can stick to without fear of losing coverage as a result of a lapse for non-payment. Insuring the main income may be more important than insuring an asset such as a mortgage especially where the debt load is smaller. Where young children are involved, generally assuring that the youngest has a chance to get through college or be able to live independently can define the length of a term.
With mortgage protection, remember that equity builds faster toward the end of the loan. Also consider whether you might refinance in the future to build an addition or add value to the home in any other way. Certain strategies like laddering can service the need as it evolves while keeping premium payments down.
Step 2 – Quote to the Budget
Our quoting tools allow for an vast number of scenarios with your personal contact information always protected and never, ever sold. This way you can shop freely at your own rate of speed. If the time comes where you desire to advance, our agents will provide additional guidance at no cost or obligation to you and your rate is not affected.
Ten year terms are the least expensive. If your need fits entirely in a 10 year box then the task is pretty easy. If not other term lengths are available. Be objective. Use our essay on Health Ratings to get a focus on the health category you would most likely fit. Our agents are well versed in presenting a case to the underwriter in its most favorable light but you must be realistic.
Step 3 – The Application As A Process
When you use our free life insurance quoting tools, it’s common to find that many companies will offer the same plan at very close to the same rate. If you have read our “Health Ratings” essay and been objective, your quotes will be accurate as a starting point. For those in less than perfect health, remember that insurers are niche animals, specializing based on age, sex, nicotine use and particular health conditions.
Choosing to apply starts with an agent who will zero in on the company most likely to approve you at the rate you desire. That is a free consultation and the services never affect your rate. Life insurance rates are regulated despite what you may read or have been told. You get what you qualify for and applications are often approved at better than quoted rates.
Depending on the insurer, an agent may take the application or the insurer may call you to take the application. For those in very good health having the carrier take the application does move the process along. If the life insurance plan is fully underwritten a paramed health exam is scheduled. Preparing for the paramed is essential to the successful approval at the desired rate.
Application decisions can take a few days or a few months. Our agents can keep you informed on the progress, even if the application was taken by the insurer directly. They can also help you with advice on how to move a case along where additional information is requested by the insurance company. They are your advocate who will take your case in the most challenging of situations directly to the underwriter.
Step 4 – Owning The Result
If you are approved and the rate is acceptable the coverage will begin once the first month is paid. Term insurance premium payments stay the same throughout the term. There is a provision where you may decline the coverage generally up to 30 days after issue and exercising that option inside the time frame will cancel the plan and return the first month premium. Referred to as a “free look” provision, it is a “money back guarantee – no questions asked” of a sort.
For those who are approved at a rate that is not acceptable, you should consider that adjusting your risk management goal (by shortening the term or lowering the death benefit) is better than being completely at risk. If you are declined the insurer will advise you by letter and you may get the details in direct contact with them. Adopt sound reasoning concerning the need, objectivity regarding your health and work with a knowledgeable independent agent from the outset, who will plead your case to the extent possible. In many cases where prospective insureds “go it alone” or simply apply on price, the outcome is better with an agent advocate.
Our agent owners are indispensable for their understanding of the niches different companies favor and their varying standards of acceptance for a given rate class. Their services are free and do not affect your rate.