Life insurance in some obscure form must have always been there; it is only since last century that the concept has been institutionalized and brought under state regulation. Today, all insurance transactions are governed by the state laws. That is why if you study an insurance life quote form, you will find that the name of your state coming at the top of it. Let us begin with the study of a quote form because the rates you will finally be paying will be based on the quote you receive.
As I said, providing the name of your state is compulsory because of legal requirements. However, all the rest are required for determining the probable cost of insurance. Let us look through the more important fields first:
• Date of birth: the younger a person is the greater is his possibility of outliving the need for insurance and so such a person always gets the coverage at the lowest possible rate.
• Gender: Women have longer lifespan and so they always are charged at a lower rate.
• Height & Weight: Since obesity may cause many diseases later in life, higher body mass index can lead to higher rates.
• Tobacco Use: It too can be the cause of many diseases later on and so a tobacco user is always charged higher.
• Health Plan: There are four health plans, each attracting different rates. Select yours carefully.
• Coverage amount & coverage term (in case of term life): Higher amount or longer term increases the risk for the carriers and so one is charged higher for that.
• Premium payment mode: Annual payment mode is always cheaper.
Other than these, most brokers may also want to know your name and address, contact number or at least your email ID. However, if you do not want to reveal your personal details in the very beginning, that is quite understandable. You will find many brokers ready to provide you with life insurance quote without wanting to know such details; you may just have to search a little more; that is all.
Now, you may wonder what actually a life insurance quote is. In brief, such a quote is an estimate that you may have to pay if all the details you have supplied in the quote form are correct. More accurately, the quote is the price the carriers offer before verification of the facts. The actual rates will be offered after more information is gathered and verified. That is why if you are not cautious while filling up the quote form or supply misinformation, the rates can vary drastically from the quotes.
Let us now go into the purchase process very briefly. It always starts with receiving life insurance quote. However, before you can receive such quotes, you are first required to decide what kind of policy will be suitable for your need. If you are looking for cheap life insurance coverage, the term life will be your best bet. Indeed, if you buy the policy while you are still young and healthy, you can buy a large coverage at a very reasonable rate.
However, remember that, it is only the fully underwritten policies, which require the applicants to go through a paramedical test, can offer the coverage at cheap life insurance rates. Term life insurance no medical exam policies are also there; but they are much too expensive, especially for healthy and tobacco free people. Many people however like them because of their quick and hassle free purchase process; it is up to you to decide if the convenience these policies offer are actually worth the rates they charge.
Now, let us go back to describing the process involved in purchase of a term life policy. It always begins receiving quotes. Always try to receive quotes from as many carriers as possible. Know that, each carrier follows different set of underwriting guideline and so for the same profile, they are sure to offer different quotes. That is why receiving multiple quotes and then comparing them to receive the best deal is an important part of the process.
Once you have made your selection, it is time you make a formal application and for that, you will have to fill up a more detailed application form. In due course, somebody from broking firm will contact you. He will do that to fill up any missing link and organize the paramedical test. A paramedic will come to your chosen location at your suitable time to take such test. Once that is done, you just wait for the underwriting process to finish. If you qualify, you will get to know about it and in a month’s time, your family will start receiving the coverage.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life term and life insurance no medical, visit his site today.
Walang komento:
Mag-post ng isang Komento