There are a few key reasons why you might need life insurance. Perhaps you have young children and want to ensure they’re taken care of financially if something happens to you. Maybe you have a partner or spouse who is relying on your income to help support the family. Or maybe you have significant debt and want to make sure your loved ones aren’t left with the burden if you happen to pass away. Either way investing in life insurance is a choice all wise people make.
William Schantz of Mid Atlantic Financial LLC notes that often people back down from the decision solely because it seems like an intimidating task. The paperwork, the research – it’s all enough to make your head spin. However, it doesn’t necessarily have to be this way. Applying for life insurance can be quick and painless, especially if you know what you’re doing.
William Schantz’s Five-Step Guide to Life Insurance
1. Decide how much coverage you need
The first step in applying for life insurance is deciding how much coverage you need. There are a few factors to consider when making this decision, such as age, health, income and debts.
If you have young children, you’ll want to ensure they’re taken care of financially if something happens to you. You’ll also need to consider their financial needs if you have a partner or spouse. And if you have any debts, you’ll want to make sure those are covered as well.
2. Choose the right type of life insurance
There are two main types of life insurance – term life insurance and whole life insurance.
Term life insurance is a good choice for people who need coverage for a specific period of time, such as when they have young children or are paying off a mortgage.
Whole life insurance is a good choice for people who want coverage for their entire lives. This type of policy also has the added benefit of building cash value over time, which you can borrow against or cash in if you need to.
3. Shop around and compare rates
Once you know how much coverage you need and what type of policy you want, it’s time to start shopping around and compare rates. There are a few different ways to do this.
You can contact different life insurance companies directly and request quotes. Or you can work with an independent agent who can compare rates from multiple companies on your behalf.
4. Fill out an application
Once you’ve found the right life insurance policy, it’s time to fill out an application. This usually involves a medical exam and questions about your health, lifestyle, and family history.
The insurance company will use this information to determine your premiums. You’ll usually qualify for lower rates if you’re healthy and have a good family history.
5. Start paying your premiums
Once your application is approved, you’ll need to pay your premiums. These are typically paid monthly, but some companies offer annual or semi-annual options.
It’s important to make sure you keep up with your payments, as failure to do so could result in your policy being canceled.
That’s it! These are William Schantz‘s five simple steps to getting life insurance. Just remember to shop around and compare rates before buying, so you can be sure you’re getting the best possible deal.