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How to get life insurance?

life insurance

Life insurance provides a financial safety net that your spouse, children, and other family members can trust if you die. Buying a life insurance policy doesn't always top the list because most people don't like to think about dying. Whether you're just curious, looking for information, or ready to buy, here's how to get the life insurance you need.

How to get life insurance

Life insurance is not a one-time purchase for everyone. You must decide the type, duration, and amount of coverage you need. For example, you may want to buy a 20-year life policy with an interest of $ 500,000.

Of course, you must also decide where to buy it. In general, there are three places to get life insurance:

  1. Directly from a life insurance company.
  2. From a life insurance agent
  3. From a life insurance broker

Life insurance companies

If you want to go directly through an insurance company, you can generally buy a policy directly. This type of policy meets your insurance needs for a specific period of time, such as 10, 20, or 30 years.

To purchase this type of policy, you generally complete an order online, check offers, choose a policy, and pay. Depending on the company, you may have the option to purchase a guaranteed issue policy that does not require a medical examination. The direct rank policy can be a good option for people who may face another problem to obtain life insurance due to health problems.

Direct rank policy can be a quick way to buy coverage, especially if you know exactly what type of coverage you want (and it turns out to be something the company offers). However, if you need guidance, have any questions, or want more options, you'd better find an agent or broker.

Life insurance agents

Agents and brokers sell most life insurance policies. Both act as intermediaries between insurance companies and insurance buyers. Both must have appropriate licenses to sell insurance products in the states in which they operate. However, while people often use these addresses interchangeably, there are some obvious differences.

The most important difference is who represents the person. The insurance company appoints an agent to sell its products. The agent representing a single insurance company is called a "captive agent," while the affiliate agent for many companies is called an "independent agent." Life insurance agents represent companies, not buyers. Their goal is to align it with the coverage of the companies they represent, which may or may not be exactly what you need.

Life insurance brokers

Brokers, on the other hand, represent insurance buyers, not corporations. They work independently and do not have contracts with any specific insurance company. This means that they can provide unbiased recommendations that are tailored to the needs of each client. Brokers generally work with a wide range of insurance companies to provide clients with a good selection of quotes and plans.

Where to buy life insurance

If you decide to work with an agent or broker, instead of going directly through an insurance company, you must make another decision: do you buy locally or online?

An insurance agent or local broker is a good option if you want to seek personal advice, consider permanent life insurance, or have a complex situation. The agent or broker is also a good option if you are not a tech savvy and will have a hard time trying to navigate an online application.

Alternatively, if you have a general idea of ​​your coverage needs, want a term life policy, or prefer to buy without help, a broker or online may be appropriate. Of course, you must feel comfortable sponsoring online business for this option to work.

Life insurance approval.

Many life insurance agents and brokers have credits from industry agencies such as the American College of Financial Services 1 and the institutes 2 (formerly the American Insurance Institute). Some common abbreviations you can find include:

If an agent or broker you are considering working with has a name (or duties) that you don't understand, be sure to ask about the acronym, the agency that issued it, and how they got it.

Buy life insurance during COVID-19

The COVID-19 crisis introduced some new challenges for the life insurance industry. First, personal tests are difficult, if not impossible, when people are supposed to be socially distant. However, life insurance companies are open to business, accepting orders and tailoring their clients' procedures to suit the evolving landscape.

Some insurance companies, for example, have gone on to review medical records, prescription history, and the like, rather than sending a professional medical assistant to your home to gather information. Others have extended the deadline to complete a traditional exam, while providing temporary temporary coverage. You can also contact agents by phone or videoconference and sign any document electronically.

Don't be surprised if you see some COVID-19 related questions on your application, such as "Has anyone in your family been tested or treated for COVID-19?" Or "Have you been on a cruise in the last 60 days?" Please note that if you answer "yes" to these questions, this should not prevent you from getting a policy, but if you answer dishonestly, this may invalidate your policy later.