How To Get Life Insurance

Compare Quotes From Different Life Insurance Companies

Once you’ve identified a qualified insurance agent and determined the amount of insurance you need, you can begin comparing life insurance quotes.

Some websites post premium rates online, but it’s best to get a quote for your specific situation. Your health, age, and medical history can all impact how much you pay, so it’s unlikely that the “average rates” posted online will be the same as what the insurance company will actually charge you.

Keep in mind that the policy you choose and the riders you add will affect the life insurance cost. Be sure to compare quotes with and without the riders so you can make a fully informed decision. Your agent should provide you with life insurance quotes from as many insurance companies as possible. That way, you don’t have to contact them for a quote one by one.

Be sure to also review the financial strength of the insurance companies. No matter how great your life insurance policy is, you wont be able to cash out if they go out of business. Only get policies from life insurance companies with a strong reputation and positive forecast.

Choosing A Life Insurance Beneficiary

As part of the process when buying life insurance, you’ll need to designate one or more beneficiaries. This is who you want to receive the death benefit from your policy when you pass away. A life insurance beneficiary can be:

• Charitable organization

You can choose to name a single beneficiary or a primary beneficiary and one or more contingent beneficiaries. A contingent beneficiary would receive death benefits from your life insurance policy if the primary beneficiary passes away.

Minor children can’t be named as beneficiaries of a life insurance policy.

Ways To Buy Life Insurance

Depending on where you live, you’ll likely have three options when it comes to buying life insurance. You can shop for life insurance with an independent local insurance agent, through an independent online broker, or by going directly to an insurance company. You can even try all three methods of shopping for life insurance to compare quotes and determine which experience you’re most comfortable with:

• Independent local insurance agents offer a personal touch to helping you find quotes that match your needs.
• Independent online brokers can present you with a wide variety of insurers and options while keeping your life insurance shopping experience completely digital like Progressive’s life insurance provider eFinancial does.
• Life insurance companies offer the advantage of being direct experts on all their policy offerings. Depending on the company, you may be able to obtain their life insurance quotes online, by phone, or with an agent.

Pro tip:

Buying life insurance online allows you to shop around. Look through different quotes to consider what you want in your policy, including benefits, term lengths, and premiums.

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What’s The Difference Between Life Insurance Vs Over 50s Fixed Life Insurance

If youre looking at your options later in life, you may be torn between getting life insurance or Over 50s Fixed Life Insurance. Lets take a look at some of the differences.

Life insurance is designed to pay out a cash sum if you die during the length of your policy. When assessing your life insurance application, we’ll ask you questions about your medical history, occupation and lifestyle. Life insurance is there to offer financial protection to your loved ones. The cash sum paid out could be used by them to pay off a mortgage for example, or help with childcare costs and other everyday living expenses. Some age restrictions apply, please read the Policy Summary PDF for full details.

Over 50s Fixed Life Insurance is designed for UK residents aged 50 to 80 who want a fixed cash sum to give to their loved ones when they die. It’s for people who want guaranteed acceptance with a simple application process and who don’t want to answer medical or lifestyle questions. Full cover is payable after just one year.

There are other important factors that you need to be aware of when deciding on life insurance vs Over 50s Fixed Life Insurance, so please read all the information available, and contact Legal & General for more information.

Please remember that neither of these plans are a savings or investment product and have no cash value unless a valid claim is made.

Take The Texas Life Insurance Licensing Exam

After you complete a prep course and your own independent studying, its time to take the Texas life insurance exam.

Texas uses Pearson VUE as its official testing service for delivering licensure exams.

The Texas life insurance exam outline contains a total of 80 scored questions that includes two sections: general and state-specific. The general section deals with basic life insurance product knowledge. The state section covers insurance concepts and terms, rules, regulations, and practices specific to Texas.

Youll have 120 minutes to complete the exam. The Texas life insurance exam fee is $33, which you must pay at the time of reservation by credit card, debit card, or voucher. The exam is a proctored test, meaning an official proctor will closely monitor you in a controlled environment.

If you happen to fail the Texas life insurance exam, you can schedule a retake of the exam as soon as 24 hours after your first attempt. Theres no limit to the number of attempts a candidate can make on the same exam.

Tip:

The best way to understand if you are prepared for the test is to take a Life Insurance Practice Exam.

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Is My Life Cover Still Valid After Ive Finished Paying For My Mortgage

Even though your policy may have been set up at the same time as you took out a mortgage, or made another financial commitment, it’s not linked to it.

Your policy would pay out in the event of a valid claim during your policy term, whether or not you still have that mortgage or financial commitment in place.

It is at the discretion of your beneficiaries how they choose to use the proceeds in the event of a valid claim.

Pick A Life Insurance Policy Type

There are two types of life insurance coverage: term and permanent. While there are many types of permanent insurance, the ones well focus on here include whole and universal. Term life insurance is usually less expensive with less benefits, while permanent life insurance is typically more expensive as it offers more benefits. Heres a closer look at what these policies cover and how they work:

You may want to do more research to find out which option will best meet your needs.

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Network At Events In Your Industry

The best way to reach new customers is not just through social media or online advertisements. In fact, many people have found that its best to go out into the world and meet them in person!

So take a day every week or two where you commit yourself to attend one event per day related to your industry whether thats an expo for companies selling insurance products, association meetings such as those held by ARDA International, or conferences such as those held by the American Institute of Certified Public Accountants.

Qualifying For Life Insurance

Insurers evaluate each life insurance applicant on a case-by-case basis, and with hundreds of insurers to choose from, almost anyone can find an affordable policy that at least partially meets their needs. In 2018 there were 841 life insurance and annuity companies in the United States, according to the Insurance Information Institute.

On top of that, many life insurance companies sell multiple types and sizes of policies, and some specialize in meeting specific needs, such as policies for people with chronic health conditions. There are also brokers who specialize in life insurance and know what different companies offer. Applicants can work with a broker free of charge to find the insurance they need. This means that almost anyone can get some type of life insurance policy if they look hard enough and are willing to pay a high enough price or accept a perhaps less-than-ideal death benefit.

Insurance is not just for the healthy and wealthy, and because the insurance industry is much broader than many consumers realize, getting life insurance may be possible and affordable even if previous applications have been denied or quotes have been unaffordable.

In general, the younger and healthier you are, the easier it will be to qualify for life insurance, and the older and less healthy you are, the harder it will be. Certain lifestyle choices, such as using tobacco or engaging in risky hobbies such as skydiving, also make it harder to qualify or lead to higher rates.

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How To Choose A Beneficiary

A life insurance beneficiary is the person who can claim the death benefit after you pass away.

You can name multiple beneficiaries and decide what percentage they each will receive when you die. Additionally, you should add contingent beneficiaries who will receive the death benefit if your primary beneficiaries have died.

Not everyone names people as beneficiaries. Some people name trusts. By creating a revocable living trust and naming it as the life insurance beneficiary, you can ensure that the money is used according to your wishes. For example, the trust money could be used to take care of children.

If you decide to name a trust the beneficiary of your policy, make sure to work with an attorney to structure the trust correctly. Its also wise to work with a financial planner so that a trust is part of your larger financial plan.

Its crucial to update and review your beneficiary selections regularly. For example, life events such as a marriage or a divorce can impact your selection.

To update your beneficiaries, contact your life insurer and submit a change of beneficiary form. Making changes only on a will wont affect life insurance.

Term Life Insurance Policies

These run for a fixed period of time, known as the term of your policy, such as five, ten or 25 years. They only pay out if you die during the policy.

There are three kinds of term life policies.

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No Medical Exam Life Insurance Options

Medical exams can prevent you from qualifying for a policy if you have health issues. If your parent does have a pre-existing condition, there are still options available. A majority of whole life polices do not require a medical exam. Coverage can often be issued by answering a few health questions on the application.

What Is Whole Life Insurance

Whole life insurance is a permanent life plan that provides coverage throughout your entire life. The premiums tend to cost more than a term plan would, but getting this insurance plan may be beneficial in the long run.

The whole life insurance cash value usually ends up being high, but payments grow in a tax-deferred account at an established rate. The premiums wont change over time and the death benefit is certain, regardless of the time frame. In this sense, the policy functions as an investment and the death benefit payout usually reflect this. Typically, the death benefit in a whole life insurance plan yields a large outcome.

At Aflac, we take the guesswork out of your decision. You can find comfort in knowing your premiums are fixed and your payout is guaranteed . To determine how much coverage you may need, try our whole life insurance calculator.

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Life Insurance: Policies Cost And Best Companies

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

• Best life insurance companies

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners, and heres how we make money.

Are you looking for the best life insurance policy for you and your family but unsure where to start? Read our life insurance guide to learn more. We break down the types of coverage available, the costs and the best companies in the business.

» MORE:Life insurance definition

Get Fingerprinted And Complete A Background Check

Due to the sensitive nature of a life insurance agents work, states require that you submit to a background check and have your fingerprints on file before being granted a life insurance agent license. You can find directions to schedule your fingerprinting appointment in the same place that you find the insurance license application, normally a state agency or department. Search for your states step-by-step guide to find contact information and links to schedule your appointment.

Fingerprinting is completed by a third-party company. As the applicant, you will pay the fingerprinting fee. Costs typically range from $35 to $75 dollars. Some states work with law enforcement agencies to provide electronic fingerprinting as an option.

In most cases, you will be able to initiate your background check online or after submitting your fingerprints. You are not required to do anything related to the background check other than paying a fee, but you should be aware that it is part of the life insurance agent licensing process.

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How Long Should I Get Life Insurance For

You should think carefully about how long you need cover for. Some people decide to get life insurance to cover the length of a mortgage term say, 25 years, while others think about how long their children will be financially dependent on them.

Ultimately, its a personal decision and you should factor in your familys unique circumstances.

How Do I Make A Bereavement Claim

If youre looking to make a bereavement claim, youll need to provide us with the following:

• Your policy number
• The name of the person who has died
• The cause, date and place of death
• Who you are and your relationship to the deceased
• The identity of the legal next of kin

What happens next?

• Please call us on 0800 137 101. Lines are open 9am to 5pm, Monday to Friday.Then our team will carry out some basic policy checks
• When you call us, have the death certificate to hand , or details about the circumstance of the death
• Our team will assess your claim this may include writing to the GP, Coroner and any other involved parties so we can obtain additional information
• Throughout the process, well keep you updated

You can also read our Bereavement Claim FAQs for more information and support.

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Find Out If You Need To Add Any Riders To The Policy

Life insurance policies offer primary benefits according to the type of policy you purchase. But your coverage can be expanded or personalized through riders, optional additions to a life insurance policy that provide supplemental coverage or benefits you wouldn’t receive with a standard policy. Adding some riders may increase your premiums, while other riders might be free.

There are two riders that you may want to consider: waiver of premium and guaranteed insurability. Some policies come with one or both included with the basic contract, but if not, it is generally a good idea to add them. Waiver of the premium pays the life insurance policy premium for you if you are disabled. Guaranteed insurability permits you to add to the death benefit without providing additional evidence that you are in acceptable health.

Wait For The Underwriting Results

The hard part is over now all you have to do is be patient. Underwriting, which encapsulates the application, phone call, and medical exam, is how the life insurance company evaluates the risk of insuring you and how much youll pay for your policy. Once its over, an underwriter will determine your health classification and final premiums.

This process can take five to six weeks, but sometimes longer if parts of your application require any supplemental documentation. For example, you may be asked to authorize your doctor to share your health information with the life insurance company, known as an attending physician statement . If you need to provide your insurer with an APS, it doesnt mean youre ineligible for life insurance or will necessarily have to pay higher premiums. But it does add an extra step to the buying process and lengthens the time it takes to complete your life insurance application.

Youre not committed to accepting a policy until you receive your final offer. If youre considering life insurance, but aren’t sure yet if it’ll fit into your budget, its smart to apply in the meantime.

Your application can be either:

• Approved as applied at the rate you applied for. This means your final offer will be the same as your original quote.

• Approved better than applied at a rate cheaper than what you applied for.

• Approved other than applied at a rate that is more expensive than your original quote, based on review of your medical records.

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