Life Insurance For Dummies Ultimate Buyer's Guide

buying life insurance for dummies

Fundamentals of Life Insurance for Dummies

When it comes to Life Insurance for dummies, people have a different level of knowledge and understanding. Here are the top important things that you should know if you want to buy life insurance that suits you. 

  1. The Two Types of Policies For Buying Life Insurance For Dummies

You can choose between term life and one of the different types of whole life policy. A term life policy is solely insurance coverage that can give a death benefit to your beneficiary after you pass away. While the whole life and other types can give you a death benefit plus an investment through a cash value that grows. It is imperative to know what suits you best.

  1. Insurance Policy is Sold And Not Bought

It is through agents from the different insurance providers who sell insurance policies. The life insurance industry is hiring agents to sells policies for a commission, especially with whole life plans. Also, you can opt for independent life insurance agents that are not working for a particular insurer. They can offer you wide arrays of policies from various insurers. It is important to understand each policy being offered to you and select one that fits your lifestyle and financial capability.

  1. Whole Life is a Bit Pricey

A whole life policy with an investment feature is indeed many times higher in premium than a term life policy. The only problem with whole life is that the insured often goes for lesser coverage to compensate for the price. It is sometimes riskier because it means that they are underinsured. 

  1. Whole Life is Based On The Agent’s Assumptions

At first, quotes are purely based on the agent’s assumptions regarding your current health condition and financial status. It is based on the information you will give to them. It is not the actual coverage and premium that you will get unless you qualify at that rate. 

  1. Have A Separate Investment and Insurance

There are many options for investing one’s money without a high commission rate from whole life insurance policies. You may choose a term life plan and get a separate investment plan. However, keep in mind that term life has a definite expiration of the policy. If you outlive the policy, then all your premiums will go to waste. 

  1. Get Enough Coverage For Your Future Needs

As you look for the lowest premium, it is important not to skip reviewing the policy’s coverage. You must acquire good coverage that suits your future needs. Also, think about your family’s future needs after your death. Assessment of your needs can be done with the help of an independent agent.

  1. Know More About The Policy Term

By the time of your passing, can your family get through all financial hardship without your help? It is an important question that you need to answer to come up with a decision about the term of your policy. Also, consider your retirement age before deciding on the term.

  1. Get An Insurance Policy While You Are Healthy

One of the misconceptions of many is that they do not need to get life insurance while still young and healthy. The fact about life insurance is that you will surely pay a higher premium as you get older. Age is a risk factor for insurers and health conditions as well. As much as possible, it is better to purchase a policy while you are young and without any health condition. 

  1. Always Be Honest

As you fill out your application form, it is vital to be 100% honest with all your answers. Lying to get a lower premium is not a wise move. Insurers will investigate by the time that you need to get a considerable claim. They will surely, later on, find out the truth. As a result, you might not get the claim that you need.

  1. The Online World Is Your Best Friend

Search and purchasing life insurance online is now even easier. They have made it for buying life insurance for dummies fans. You can search anytime you want and get a quote from dozens of insurers. It is faster and easier to compare companies, policies, coverage, and premium online without being pressured by salespeople.

Buying Life Insurance Explained

It is good to know what many people end up buying life insurance online. These reasons are what will drive you to become a buyer as well. The following are the top reasons many people result in buying life insurance. 

First, let’s begin with the shopping process. You will surely identify one that will drive you into buying coverage.

  1. According to surveys, 41% of shoppers find life events as a driving force to buying life insurance online. For instance, marriage, having a child, purchasing a home is some of the main reasons.
  2. Some shoppers consider buying one because of the convincing effort of financial advisors and agents. Most of them buy because an agent initiated to contact them and explain the need to get one.
  3. Almost 25% of buyers are not contented with their current insurance coverage, so they are looking for other policies and insurers.
  4. Others choose to buy life insurance because one of their family members or friends knows an insurance agent, asking them to discuss getting life insurance.

Buying Life Insurance Basics 101

  1. Almost 78% of shopper gets into buying life insurance because of the previous relationship with agents and only 10% of shopper who had no direct relationship with their agents.
  2. Many shoppers are convinced to buy one because of needs base analysis presented to them. It helps them to understand how life insurance work for their future needs. More shoppers bought insurance after needs analysis than those who do not get one. 
  3. By getting a recommendation by agents, shoppers likely to buy larger policies with good coverage.
  4. Also, 35% of shoppers who do not buy life insurance claim that they are still shopping around and waiting for their agents to follow them. 

A Checklist for Whole Life Insurance for Dummies Buyer’s

Insurance agents will ask you the following questions when assessing your status and future needs.

  • Financial Status

They need to know your daily expenses and your lifestyle. It will determine your family’s future needs, especially after your passing. This stage will help you find out how much money your family needs to recover after your death. 

  • Long term Goals

What is your long term financial goal? It will determine how much wealth you want after your retirement. Do you want to give yourself a decent burial, or do you also want to give your family financial security after your untimely death? It is a crucial factor in deciding whether you need term life of whole life. 

  • Dependents

Who are your dependents, or how many beneficiaries you have? Also, it is essential to consider if you still have little children. If they are already working, then your spouse might be your beneficiary. 

Many inquiries need an answer when it comes to purchasing life insurance. These are the three most crucial questions that you need to find out the answer to. 

 

Preparation For Life Insurance Medical Examination

medical examAfter your application, then you will be scheduled for a medical examination. It is one of the essential parts of the process as it will determine your premium and amount of coverage. So, it is good to do everything possible to ensure that result will turn out good.

Moreover, you cannot change your health condition and medical history in a matter of a few weeks and months. It is not good to take diet pills or miracle herbal, but planning can make a huge difference. The following are useful tips that avoid poor results from your medical exam.

  • Relax your mind and body while taking the medical examination. A nervous body can raise your blood pressure, and it is not a good sign for insurers.
  • Do not give false information to the medical examiner. In case they found out that you lie, you might lose your policy and end up not getting anything.
  • It is good to do the medical exam inside your own home. Doing it inside your own home’s comfort will lessen the stress and anxiety that you may experience.
  • Always wear comfortable clothes. It is easier for you and for the examiner to take blood pressure and blood extraction. 
  • If you smoke or drink alcohol, it is better to avoid it for a few weeks before your medical exam. 
  • It is also better to do the exam early in the morning because you need to fast for 8 hours.
  • It is better not to take a medical exam during the holiday season. It is one of the most stressful events, and binge eating is not good for your health. It can affect your health negatively, and you might get a poor medical result.

 

How Does Life Insurance Work When Ready To Buy

For some, purchasing life insurance might be a daunting task. It is especially true for people who are working and have a very busy lifestyle. However, by understanding the basics of the entire process, everything will be easier. The following are some important keys to remember:

  • Stay away from pushy agents. A good and experienced agent will allow you to make your own decision by giving suggestions and recommendations. If you encounter an agent that makes you feel guilty and is very pushy, then do not be shy to walk away.
  • It is better to have a long-term mindset. It is good to decide whether you want a permanent or lifetime policy and use it as your assets. Maybe you want to rent a policy for a specific time and invest money from a different area.
  • Always get one that you can only afford. Sadly, most policies end up being surrendered or lapse because the insured cannot pay for the monthly premium. It is good to get one that you can afford to pay for now and in the future. You can always buy expensive coverage later if you need it. 
  • There is no medical exam life insurance for those who do not want to undergo a medical exam. However, the cost is higher than the traditional one. 
  • It is always good to get the service of an independent agent like Coach B. An independent one is not working for a particular insurance company. They are connected with a long list of insurers, so they offer you a list of policies, the coverage that suits your needs, and the ability to pay. Going to an independent agent will lead you to better choices.

Getting life insurance for the future does not need to be hard and time-consuming. With internet technology and our quote and apply software there is no need to talk to an agent for more than 10 minutes or not at all. Some insurers can offer non-med policies that you can get issued within 48 hours. If you want to find out how you can call 800-342-1537, an agent is always ready to help you.

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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