How Can You Use Term Life Insurance
The following steps break down how term life insurance works – from purchasing a policy to using it.
- 1. Calculate your life insurance needs.
- Figuring out how much life insurance you need isn’t as challenging as it may seem. You can use a free life insurance calculator to quickly determine your life insurance needs, or you can talk to a trusted agent/producer.
- Once you have a better understanding of your needs, you can weigh your options to determine if term life insurance is the best choice for you. Remember that your needs change over time, so a term life insurance policy may only be needed until you reach retirement age when your financial obligations typically decrease.
You may need a few things to apply for a life insurance policy, so have these things on hand to make the process as easy as possible.
Driver’s license or ID
Proof of income
Proof of residence, like a utility bill or a rent receipt
Think about who you want to receive the benefits in the event of your death. This is called your beneficiary.
Contact an agent/producer or complete an online application to apply for a term life insurance policy.
After you submit your application, the insurance company reviews your previous insurance and pharmaceutical history to help determine your eligibility. Once you meet all of the eligibility requirements, you are issued your policy.
Enjoy some peace of mind
Your life insurance helps offer you financial protection and some peace of mind for your specified term. If your policy remains active and your death occurs during that period, your family receives the amount listed in the policy to help cover their financial needs.
If you want to extend your life insurance coverage past the term, you can renew your term life insurance policy, but your health and eligibility will be re-evaluated at that time. You will begin paying for your policy again, and the rates could have changed since you purchased your first term.
Whole Life Insurance
1. Protection that will last
2. Cash Value
4. Can address more concerns then just premature death
5. Initially more expensive