A life insurance policy is a contract with a life insurance company. If you have a life insurance policy and in case you die too early then your life insurance provides your family with a specific amount of money each month replacing yours until and unless the receivers don’t deny from taking it. It also facilitates any emergency fund required by your family in case of a medical check-up or for funeral costs etc. There are few essential steps for a life insurance policy that you need to fulfill.
Essential Steps for a Life Insurance Policy
There are ample people out there who want to apply for a life insurance policy but the difficult process confuses them causing not to put on their hands on such a complicated procedure, but not to worry anymore because the steps given below will make things easier for you.
Step 1: Fill out an Application
The life insurance company chosen by you will provide an application form which usually takes around 15 to 20 minutes in completing it. All the life insurance companies ask the following things from you on the application form:
- Personal Details- First your personal details will be asked from you such as your name, address, height, weight, date of birth, occupation, and phone number.
- Health and Family History-Secondly questions will be asked regarding you and your family history.
- Lifestyle Habits-Information about your hobbies will be asked.
- Annual Income-Your annual income will be asked.
- Insurance History-Questions will be asked about any other insurance that you currently have.
Remember not to hide anything regarding this information because the company can cancel your paid premium. And once you are done with filling the application form you are off to undergo a medical exam.
Step 2: The Medical Exam
Going through a medical exam for applying a life insurance policy is the second step where it takes a few minutes of your time. The medical exam may include the following points:
- Check your blood pressure.
- Take a blood sample.
- Take a urine sample.
- Check your height/weight.
- Review your and your family’s medical history.
- Analysis of your habits (smoking, drinking, exercise, diet) is done.
- Few additional tests are performed.
Step 3: Pay for your Desired Policy
To get your desired life insurance policy you need to select a death benefit that must be equal to your potential lost income. You need to buy that insurance policy which you afford meaning that you should be able to pay on-time duration of the policy. And in case if you select a policy for which you can’t pay then your policy will be canceled.
Things that make it difficult for you to get a Life Insurance Policy
- Your pre-existing health conditions, for example, if you are a cancer survivor or have experienced other health problems in the past, then you need to pay a heavier amount of money for getting a life insurance policy.
- High-risk occupation, for example, if you are working in military service and your life is always in danger.
- If you are being involved in bad habits, such as sky diving or drinking.
- Most importantly, if you have even lie in one point of the application form then surely your life insurance policy will be canceled.
These are the essential 3 steps that need to fulfill first. We think this post will help you to get a life insurance policy. You can also get information from Wikipedia.
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