Being ready to buy life insurance or annuities requires doing homework in advance. You’ll save time and money by being prepared to answer insurance agents’ questions and knowing what type of coverage you need. Here are some tips to help you get ready.
Know How Much Life Insurance You Need
Most people need more life insurance annuity than they think. A good rule of thumb is getting coverage equal to 10-12 times your annual income. If you have young children, you may need more. Use an online life insurance needs calculator to calculate how much coverage you need. If you’re unsure how much coverage you need, ask an insurance agent for help.
Decide What Type of Life Insurance You Need
There are two basic life insurance policies: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period, usually 10-30 years. Whole life insurance covers you for your entire life.
Most people consider term life insurance because it is less expensive than whole life insurance. If you are young and healthy, you can get a large amount of coverage for a relatively low premium.
If you have a family history of health problems, you may need to purchase a whole life insurance policy. This type of policy is more expensive but will cover your entire life.
Consider Your Family’s Needs
Make sure you have enough coverage to pay off your mortgage, support your spouse and children, and pay for your children’s education. You may also consider purchasing life insurance and annuities to pay for your funeral and final expenses.
Be Honest with the Insurance Agent
The cost of life insurance annuity depends in part on your health. Be honest with the agent about any health concerns you have. The agent will be able to give you a better idea of what type of policy you need and how much it will cost.
It would be best if you also were honest about your lifestyle. You will pay more for life insurance if you smoke, play contact sports, or have a risky job.
Be Prepared to Answer Questions About Your Health
The company will ask about your health when you apply for annuity life insurance. The agent will also likely ask you to take a medical exam.
The questions about your health will cover your weight, height, blood pressure, cholesterol levels, and whether you have any pre-existing medical conditions. The medical exam will usually include a blood test and a urine test. The examiner will also take your blood pressure and weight. You may be asked to provide additional information, such as your medical records or stress test results.
If you have any concerns about the questions you will be asked or the exam, be sure to ask the agent in advance.
Getting annuity life insurance doesn’t have to be complicated. By doing some homework in advance, you can be prepared to answer questions from insurance agents and know what type of coverage you need. iWill Advisors is a great place to start if you need help getting life insurance or an annuity. We can help you understand your options and find the right policy for you. Contact iWill Advisors today to get started.