How to Buy Life Insurance
Follow these steps to buy Life Insurance:
If you are buying a new policy to replace one that you have, do not cancel the old policy until you have your new one in place.
- Determine if you need life insurance: Determine if firstly you need life insurance. Do you have someone who depends on your income such as a spouse or a child? Do you want to leave a charitable donation? There are many reasons why you may need coverage
- Learn about your options: There are many reasons why you would need coverage and many types of life insurance. Decide which insurance best fits your needs, term, whole, or Universal Life. If you are not sure, you may to contact us.
- Decide how much insurance you want to buy: Don’t buy more than you need. You can complete the Life Insurance needs analysis form. You may also want to talk to one of our advisors.
- Get quotes: You can receive life insurance quotes online but most of these prices you see are just examples and do not give the full breakdown of the policy, so ask for actual numbers. You may need to to proceed with the application before learning of what the actual rate is for your circumstance as you may pay higher premiums if you have a health problem.
- Complete the application form: It is important that you answer any health questions honestly. With the application you can send in the first month’s premium (cheque) to receive the temporary insurance benefit.
- Review the policy once issued with your agent or broker: Make sure all information on the policy is accurate. Ask questions about anything you don’t understand. In most cases you have 10 days to review the contract before it is final. You will receive the any premiums paid back if you choose not to proceed before the 10 days.
- Decide whether or not to accept the policy:
- If you accept the policy, sign the policy receipt, follow the instructions for returning it along with any outstanding amounts owing on your first month premium. Keep your copy of the policy in a safe place. Be sure to tell someone you trust where to find it along with the contact information of your advisor.
- If you don’t accept the policy, choose the option to refuse the policy and return it.
About the Author
Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.