How do I buy life insurance?

Buying life insurance can seem like a daunting task, but it's actually a straightforward process. Here are the steps to follow:

1. Determine how much coverage you need: Before you start shopping for life insurance, you need to know how much coverage you need. This will depend on your financial obligations and your income. A good rule of thumb is to have coverage that is equal to 10-12 times your annual income.

2. Decide what type of policy you want: There are two main types of life insurance: term and permanent. Term life insurance provides coverage for a specific period of time, such as 10 or 20 years, while permanent life insurance provides coverage for your entire life. Term life insurance is typically less expensive than permanent life insurance.

3. Shop around for quotes: Once you know how much coverage you need and what type of policy you want, it's time to start shopping around for quotes. You can get quotes from individual insurance companies or work with an independent insurance agent who can provide you with quotes from multiple companies.

4. Apply for coverage: Once you've found a policy that meets your needs and fits your budget, you can apply for coverage. This typically involves filling out an application and possibly undergoing a medical exam.

5. Review and accept the policy: Once your application has been reviewed and approved, you will be presented with a policy. Be sure to read through the policy carefully and ask any questions you may have before accepting it.

6. Make payments: Finally, you will need to make regular premium payments to keep your life insurance policy in force. Missing payments can result in the policy being cancelled, so be sure to stay on top of your payments.

Remember that life insurance is an important investment in your future and the future of your loved ones. Take the time to shop around, ask questions, and find a policy that meets your needs and fits your budget.

What is the “free to look” period?

The "free look" period, also known as the "cooling off" period, is a provision in many insurance policies that allows the policyholder to review the policy and decide whether or not to keep it. During this period, which typically lasts between 10 and 30 days, the policyholder can cancel the policy for any reason and receive a full refund of any premiums paid.

The purpose of the free look period is to give the policyholder time to review the policy and make sure it meets their needs. It is particularly important for life insurance policies, which can be a significant financial investment.

It is important to note that the length of the free look period and the specific terms of the provision can vary depending on the insurance company and the type of policy. It is always a good idea to read the policy carefully and understand the terms and conditions, including any provisions related to the free look period.

Is it true that some companies won’t turn applicants down?

No, it is not true that all companies won't turn applicants down. Insurance companies have specific underwriting guidelines that they use to evaluate the risk of potential policyholders, and these guidelines can vary widely between companies. While some companies may be more lenient in their underwriting criteria and may be willing to accept applicants with certain health conditions or high-risk occupations, there are no guarantees that all applicants will be accepted by all companies.

It's important to note that the purpose of the underwriting process is to determine the risk level of each applicant and to set premiums based on that risk. In some cases, an applicant may be declined for coverage if their risk level is deemed too high by the insurance company. Additionally, some policies may have specific exclusions or limitations that are added to the policy based on the applicant's risk factors.

If you are concerned about being declined for coverage, it's a good idea to work with an independent insurance agent who can help you navigate the underwriting process and find a policy that meets your needs and fits your budget.