Over the weekend, I decided it was time to look into life insurance. Next year, I will be 30, and according to my own personal finance goal list, I need to get life insurance.
Life insurance was previously not a priority to me. However, life has also proven how short it is and that anything can happen at any time. In fact, a good friend of mine sadly passed away earlier this year at the young age of 34 from cancer. Thus, I felt it was high time that I, too, look into life insurance for myself despite not having children yet. Here are a few reasons you may want to consider life insurance for yourself:
Life insurance is for everyone
As I mentioned, life happens and very quickly. You do not need to wait to have a family of your own in order to consider purchasing this type of insurance.
Someone else will have to take your financial burdens
If you have someone who c0-signed a loan for you or will be responsible for your funeral costs, this is a way to prevent the stress of your loss be increased by the looming expenses falling under their responsibility. Not to mention, if you share a household with a significant other as I do, the ongoing living costs and existing debt won’t be as overwhelming due to money coming in from the policy. Giving your loved ones financial comfort should the unthinkable happen is more important than you may realize.
A variety of options exist for your current situation
The life insurance policy you sign up for may not be the same as your parents. For instance, you could opt to do a term insurance plan of 10 up to 30 years. An expert can help you determine which route is best for you, which does also help determine your cost as well. But, in the long run, the investment could be worth it; in fact, 86 percent of consumers feel people the same, according to this 2016 Insurance Barometer Study by Life Happens and LIMRA.
There are so many options out there when shopping for life insurance. Term life insurance sales agencies like SelectQuote, though, exist to shop companies for you. I went through the process myself, and here is what I found:
Using the online quote service from SelectQuote
I started with retrieving a quote online first, which was pretty straight forward to use. As you work your way through the health history questionnaire, you are prompted to answer from fairly basic and straight forward inquiries. There were some questions I was slightly unsure of due to some overthinking on my end, I am sure. None of the questions are really open-ended so you don’t get that opportunity to type in any specific or special situations. Thus, I had every intention of following through with a phone call once completing the initial survey, but SelectQuote got to me first.
Once you finish noting your answers, a representative promptly contacts you and forwards you to a licensed agent in your state that will be your assigned agent throughout the process. It was during this conversation that I was able to go through some of the details I needed to clarify, such as my mitral valve prolapse and heart murmur.
What to expect
The agent clarifies all questions with you and will even go through more as they do the shopping for you at no cost to you. If you were to do the policy shopping on your own, you would apply to multiple companies before finalizing one. What the agents at SelectQuote do is shop the market for you so that, at the end, you are only filling out one application.
Immediately, prior to even going over any companies or rates, my assigned agent gave me a recommendation of a 30 year term life insurance policy with a $250,000 based on my responses. I had initially marked a 10 year term policy so that I was giving myself room to change my policy, but Danny, my agent, mentioned my premium would not go up if I went with a 30 year policy. This is something I would prefer to clarify through a little more research but was mostly satisfied by his advice. He added that I could always apply for a higher amount.
It’s important to note that the companies they work with must have an A or A+ rating, and the agent’s job is to find you the best rate possible for your recommended policy.
It took a little digging and adjusting, but Danny was able to find not only a low-cost monthly payment for me but also for my boyfriend. At first, it seemed I would qualify for a number one rate class due to my great state of health and health history; however, due to my father’s passing at the young age of 51 from a heart aneurysm, I was pushed to a number three rate class. This increased my monthly quote slightly, but the quoted rate is still affordable. All the companies they work with will pay out the death claim, but for SelectQuote, it is who will charge the least amount for you.
What you need to know
It is best to reach out to SelectQuote only if you are serious as they work diligently with you to get the process on your policy started. However, a simple quote and idea of coverage is still very much attainable through the conversation. But, they will encourage to schedule a medical exam with you over the phone, which is just to make sure you follow through to solidify those rates.
A medical exam will need to be conducted before any rates are finalized or locked in. Danny did take my card on file but assured me I would not be charged until the exam and process were complete, which can take three to five weeks to finalize. The medical exam costs are also actually covered by the insurance company you plan to sign up with.
Before making the call, you should also do a little more research on what policies might be best for you and your situation. You should also decide who your beneficiary will be if you are not married or have children. I chose Ryan, my boyfriend, because he is considered my domestic partner, we’ve been together for more than seven years and do have an intention of getting married. The agent can also help you decide this if you wish to ask for their opinion.
Once your agent finishes the final questions, he or she will attempt to schedule the medical exam. You can turn it down and choose to schedule it when you receive a call from the examiners in the following three days like I did, but be prepared for this to be requested.
The entire process took close to an hour, but it could take longer depending on your questionnaire. While somewhat time consuming for a simple quote, the attention and detail is included to ensure the best price for you. So, it is worth going through.
Over the phone, I was also able to get a quote for my boyfriend as well. Overall, my first impression was quite positive. At one point, my phone call was even cut off with the representative, and they called me back right away. Customer service and personal attention are extremely important to me when choosing a company, and they get an A+ from me for this alone.
My end final quote was roughly $25 while Ryan’s was $20 for the same policy. I found these rates affordable and felt much less overwhelmed about the entire process than I did prior to even looking into life insurance plans. It was also convenient to have someone else do the shopping for me.
*Note: This article was sponsored by SelectQuote, but all thoughts and opinions are all my own.
Are you looking into life insurance? What has been your experience?
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