In today’s financial environment, it’s important to know that there are some things you don’t have to worry about. Life insurance can be the foundation of financial security for you and your family. It can be the base upon which other insurance and investment decisions are built.
How Can Life Insurance Be Used to Help Your Family? The flexibility of life insurance means it can be used to protect those you care about in a variety of situations. In addition to yourself, coverage is available for your spouse, your partner, your children, and even your blended family.
When deciding which type and amount of life insurance is right for you, you’ll need to answer these important questions:
What do you want the insurance to cover?
What amount of coverage do you need?
How long will you need the coverage for?
What’s your budget?
Answering those questions can help you understand which type of life insurance would work for your situation. There are two main types of life insurance:
- Term, which provides temporary coverage.
- Permanent, which provides coverage for the rest of your life.
Within both of these main types of life insurance are different types of policies.
The Application Process
Once you’ve decided to buy a policy, your financial professional will complete an application with you and then submit it. The insurance company will begin a process to obtain medical information to determine whether the company can insure you and what your payments will be.
The three-step process includes a medical exam, a medical history interview and underwriting.
Both the physical exam and the interview will be done at the company’s expense and your convenience.
The Physical Exam and Interview
The life insurance physical can usually be done in your home. The exam will generally take between 20 and 30 minutes.
The medical history interview is a telephone interview that will take about 20 minutes. The interviewer will ask you to verify your identity and to provide information about yourself. The interviewer will then ask questions relating to your medical history and health.
“Underwriting” refers to the evaluation of your current health, medical history, family medical history, and your lifestyle. This step occurs after all of the information is collected. The insurance company’s underwriters establish your eligibility for life insurance and help ensure that you get the lowest possible premium.
Contact a Digital Life Insurance representative today. Please refer to the Resources page to find a local representative.