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Fidelity Life: 5 ways to make buying one’s first life insurance policy easier

Life insurance is essential if you have people depending on you. We’ve developed this list of top tips to help you find the life insurance company with the right type of policy for your needs.

Those who are new to buying life insurance may initially feel the task seems complicated. According to LIMRA study, 53% of Americans don’t purchase life insurance because they don’t know how much they need or what type to get.

A few ways life insurance shoppers can make buying life insurance easier include getting quotes online, choosing a policy type, and getting a policy at a young age. Depending on the policy selected, it may be possible to get life insurance with no medical exam. Here are five ways life insurance shoppers can make buying a policy for the first time easier.

1. Get quotes online

Most Americans overestimate the cost of life insurance, deterring them from purchasing a policy. Getting quotes online can help shoppers find policies that are within their budget. Most life insurance providers will provide individuals with an estimated premium price after they answer a few questions about their age and health. It’s important to get multiple quotes as they can vary between companies. After getting multiple quotes, shoppers can decide on a policy that provides the coverage they need at an affordable price.

2. Get a policy at a young age

Life insurance shoppers who want an easier time getting an affordable policy will want to get one at a young age. As an individual gets older, life insurance premiums will increase. For example, a 30-year-old female could get a $500,000, 20-year term life policy for an annual cost as low as $336. In contrast, if the same female waits until age 40 to purchase the same policy, the annual premium cost would potentially increase to $480. Additionally, if a younger person is in good health, a life insurance provider may choose to exempt them from having a medical exam.

3. Choose a policy type

Most life insurance policies, like term life insurance, require a medical exam. This exam helps the insurance company accurately assess risk and set your premium. If you have a serious medical condition, you may worry life insurance is off-limits to you, but this may not be the case.

There are two types of life insurance policies available without a medical exam. A no-exam life insurance policy, like a simplified issue or guaranteed issue, maybe just the option for you and your family.

Types of Life Insurance Policies

Here are some of the best policy types to consider:

1. Term Life Insurance

Term life insurance lasts 10 to 30 years, depending on the policyholder’s choice. The policyholder risks outliving their policy, but premiums are cheap — especially for younger people like Gen Z’ers.

2. Whole Life Insurance

Whole life insurance is a form of permanent life insurance, meaning it lasts for a lifetime if the policyholder keeps up on their premiums. Premiums cost more than term life insurance, but a Gen Z policyholder can lock in rates while young to save money.

These also come with a cash value savings component. Part of each premium goes into this cash value component, which grows tax-deferred at a fixed rate. As a result, these can be great wealth-building tools for Gen Z.

Once this cash value grows enough, policyholders can tap into it via low-interest, no-credit-check loans or withdrawals. If the policyholder surrenders the policy, they get the full cash value minus surrender charges.

3. Universal Life Insurance

Universal life insurance also lasts for a lifetime, but the policyholder can adjust their death benefit. For example, increasing the death benefit may require a medical exam and higher premiums, whereas decreasing it could reduce premiums.

The cash value grows at a variable rate.

4. Know upfront how much coverage you need

Life insurance shoppers can estimate the coverage they’ll need by adding up all their current debts. If a shopper has a family, it’s recommended to multiply one’s income by ten and add an extra $100,000 for each child. Adding all these figures together can help give an individual a rough estimate of how much coverage they might need.

5. Understand life insurance vocabulary

The most complicated part of getting life insurance can sometimes be understanding the vocabulary. The premium is the monthly or annual payment to keep a policy active. A beneficiary is a person or people chosen by the policyholder to receive their policy’s death benefit. The death benefit is the money paid to the beneficiary after the policyholder’s death. Understanding these terms can help life insurance shoppers make buying a life insurance policy easier.

Bottom Line

Finally, consumers looking for the fastest and easiest approach to getting covered may wish to explore simplified underwriting options where coverage is based on a few health questions rather than a medical exam.

Fidelity Life offers no medical exam life insurance, Life insurance shoppers answer a few health questions and be matched with a policy that suits their needs. They can discuss their options with a licensed agent or continue the application and purchase process online.

Contact Information:

Name: Michael Bertini
Email: michael.bertini@iquanti.com
Job Title: Consultant

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