How to Apply for Term Life Insurance


How to Apply for Term Life Insurance

Determine how much you need: Schlesinger says you can use online life insurance calculators to figure out how much term life insurance coverage you need. A general rule of thumb, however, is to take your annual income and multiply it by 10.

Get quotes:  It’s good practice to compare and shop policies online. There are plenty of quote comparison sites you can use, or you can get direct quotes from individual providers. “A good place to start to look for term life insurance is the company you already use to buy auto or homeowners insurance as there may be a reduction in price for buying the bundle,” says Schneider. You could ask an insurance broker or financial planner to help you shop policies, but be sure to ask if they receive commissions for their work — that could skew their advice. 

Complete the application: You may be asked additional health questions when completing the official application. 

Schedule a medical exam (if required): Some term life insurance providers require a medical exam. If you’re healthy, you may be able to get a lower rate with a medical exam than with simplified issue term life insurance. 

Get approved: The underwriting process could take a few weeks, or you may be able to get instant term life insurance from some providers. 

Pay your first premium: After you pay your premium, set up automatic payments to ensure the policy stays in force. 

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