Have you been steering clear of life insurance for any of the following reasons?
It's too expensive.
It's too hard to buy.
It's too confusing.
It's unobtainable because of my health issues.
It's too late because I am a ghost.
If your excuse is any of the first four, this handy infographic on how to buy life insurance is for you. Take a look, and in less than a minute you'll know exactly what happens when you buy term life insurance. And yes, it really is that simple.
If you are a ghost, then unfortunately you are right. It is too late. And also I ain't afraid of you.
If you can't see the image or don't like pictures, here are the 8 steps in a friendly text format:
How to buy life insurance in 8 easy steps
Step 1: Figure out how much coverage you need
You use our life insurance coverage calculator to figure out what you’ll need based on your financial information and family situation.
Step 2: Get quotes and choose your policy
Based on your coverage requirements, we show you quotes from competing insurance companies, and you pick the coverage and price that works for you.
Time for steps 1 & 2: 10-20 minutes
Step 3: Submit your application
You answer some basic questions about yourself, your lifestyle, and your financial situation.
Time: 20-25 minutes
Step 4: Complete a free paramedical exam
A technician comes to your home or office to measure your vitals and take blood and urine samples, to work up a better picture of your overall health. The results of the exam are delivered to you and the insurance company.
Time: 30-45 minutes
Step 5: Additional health history detail needed
Once the results of your paramedical exam come back, an underwriter reviews them and determines whether she needs additional details of your health history. (If she doesn't, you can jump ahead to step 6.)
The underwriter may request an Attending Physician’s Statement from your doctor, and may ask you to provide more information as well.
Time: Varies based on response time from your attending physician; expect 1-4 weeks on average.
Step 6: Underwriter reviews application
She checks an industry database called the MIB to see if you have a record of past activity with insurers (think of it as an "insurance credit report"). She also looks at your Department of Motor Vehicles record for risky behavior, and if your state keeps a pharmacy registry she may look there for signs of any medications that haven’t been disclosed.
Step 7: Final rate determined
Using this information, your health history, and statistical tables that predict each applicant’s mortality risk, she determines a final rate for your policy.
Time for steps 6 & 7: 2-4 weeks
Step 8: Policy delivered for applicant’s review, signature, and payment
Policy goes into effect
You’re officially insured! Make sure your beneficiary knows, and always pay your premiums on time to ensure the policy doesn’t lapse.