Six Rules of Life Insurance

Today, we’re going to be talking about Six Rules of Life Insurance. What should she do? Well, her first step is simple: shop around for the best life insurance plan. To do this, you can either go online and manually get quotes from insurers, contact a local insurance agent, or use our prefered website to easily compare insurance quotes from the best providers. Regardless of method, once you selects a plan, she’ll have to submit an application that provides basic information to the insurer, such as employment status, proof of income, and a release for the insurer to review her health records.

After that, an insurance representative will contact her to schedule two things: a phone interview and paramedical exam. During the phone interview, the representative will typically ask you questions about her hobbies, lifestyle, and health history. During the paramedical exam, which generally takes place either at home or at work, a trained medical professional will take you basic vital signs, as well as a blood and urine sample.

Once those two tasks are completed, assuming that everything else is in order, an insurance underwriter will look at you application and approve her. Now that you understands how life insurance works, and how to get it, as long as she follows these six rules, she should be set for the future.

Rule 1: Determine if life insurance is really necessarily. Unless you have a dependent, you really don’t need it. Rule 2: Don’t get permanent life insurance, whether it's whole, universal and variable. Instead, get “level premium” term life insurance, which is far cheaper and gives you a locked-in premium for the rest of your term. 

Rule 3: As a rule of thumb, target policies worth at least five to ten times your income, and consider insuring your spouse. For a more exact calculation of your family’s insurance needs, be sure to check out our recommended calculator.

Rule 4: Read the fine print of any life insurance plan you are considering, don’t just pick the one with the lowest premium.

Rule 5: Only get life insurance from reputable providers with excellent credit ratings. If that sounds confusing to you, don’t worry, our recommended website does this screening process for you.

Rule 6, the final rule: Once covered, be sure to teach beneficiaries of your policy how to file a claim. That way, in the event of your death, your family knows how to get the death payout.