mbrellas come in different shapes and sizes. You buy the umbrella according to your needs and requirements. If two people need to fit in the umbrella, you would need a bigger umbrella.

Insurance is like an umbrella protecting your loved ones from unfortunate events. Like umbrellas, insurance also comes in different types, and you need to choose the one best for your needs.

Applying for insurance is more than just an application form and answering the questions. It's more about the future and protection of your loved ones. Thus, a simple mistake while signing up for insurance can be hefty to your loved ones.

Thus, it would be best to be extra careful while applying for insurance. Here are some steps you need to follow while applying for insurance.

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Assess Your Current Financial Situation

You must assess your current financial situation before determining how much insurance you need.

Insurance is a risk managing tool that helps you and your loved ones be prepared for the worst scenario in the future. So, insurance is done for the security in the future by sacrificing some amounts in the present.

At present, insurance premiums are the expenses you need to bear for the future. So, it is very crucial to know your financial situation before hopping into insurance.

Insurance premiums are the bloodline for your insurance, and if you fail to pay premiums on time, then your insurance will be void. You would lose the insurance contract and all the money you have paid as a premium.

Thus, you must ensure that you are capable of paying the insurance premium and can afford insurance.

Determine How Much Coverage You Need.

It's crucial to determine how much coverage you need such that if the worst scenario happens, your loved ones won't suffer from the financial crisis. There is no exact way to determine how much coverage you need.

But, there is a rule of thumb that recommends you to have a policy that is ten times your annual salary. While this is a random method, which may not be accurate, several other methods have been proposed to determine how much insurance coverage you need.

One of the popular methods is the DIME formula which considers your debt and final expenses. It is an acronym for debt, income, mortgage, and education expenses.

Thus, the right insurance policy is the one that covers all these expenses after your death. With these factors in mind, you may determine how much coverage is required to keep your family afloat.

Choose The Insurance Type

There are several types of insurance available with different features and benefits. It's crucial to determine which one is best for you based on your requirements and financial status.

Generally, there are two types of insurance coverage; Term and Permanent life insurance. Term life insurance covers life insurance for a specified period and is comparatively cheaper, whereas permanent life insurance covers the whole life and is usually more expensive.

You may want to read this article to learn in-depth about types of insurance to know which insurance best fits your need and requirement.

Compare Life Insurance Companies For The Best Rate.

It is crucial to go insurance shopping to ensure the best rate. You can look for a few life insurance providers and compare them to get the best rates.

The best life insurance company for you may provide competitive rates, coverage options that meet your insurance needs, and excellent customer service.

Get Several Life Insurance Quotes.

Once you have selected a handful of potential providers, get quotes from each company. Most major life insurance companies have an online quote generator that allows you to get an instant rate quote right from the website. If not, get in touch with an agent.

When you request to receive a quote, you will typically be asked to provide some personal information, including your age, address, and gender. Additionally, you will likely need to submit basic information about your medical history.

Usually, you are questioned about your lifestyle, smoking history, prior operations, and drugs you are taking. Generally, there is no need to submit official medical records to get a quote. The insurance company will then use the information provided to calculate your life insurance rate.

Apply For The Insurance

After finding the best insurance quotes and company that fits your needs, you can apply for insurance.

Generally, you are required to fill out an application form. The form consists of questions about your personal information, social security number, driver's license, etc.

Also, you may be required to provide an Attending Physician Statement (APS), which assists the insurance company in validating your medical history. The APS calculates death benefits and ensures you get the right policy.

Verification and Interview

After the application is received, the insurance provider requires you to verify your identity and your medical condition. For this, you can expect a phone interview after submitting your application.

The interview is primarily used to verify the information you provided on your application, but you may be asked some follow-up questions.

The interviewer, for example, will be interested in learning more about your lifestyle and activities, as well as your financial health, income, and any other life insurance plans you may have.

The interview is usually brief, and it will take place soon after you complete your physical application.

Medical Examination.

Before being accepted for coverage, most life insurance companies require applicants to undergo a physical examination.

It's a bit different from a doctor's appointment. The examiner from the insurance company would personally visit you to collect your medical statistics, including your height, weight, blood pressure, and draw blood for further medical tests.

The life insurance medical exam verifies your medical condition if you have some medical issues.

Be Patient And Wait For Approval

After all your hard work, take some rest and wait for your application to be approved. The insurance company decides if you are eligible for the insurance coverage from all the tests and information you provided.

Furthermore, this will determine your insurance costs, premiums to be paid, and insurance term. It takes some time to approve the insurance application since the insurance company needs to verify several things.

After the insurer approves you for the insurance, you will be issued the policy paperwork to sign and agree.

If you are satisfied with the policy, you can officially sign the contract to begin your insurance coverage. If you are not satisfied, you can ask them to review it or choose another insurance company as per your need.


Thus, applying for insurance can be a long process, but since it is about the future of your loved ones, you need to proceed carefully to ensure no mistakes are made.

The proper planning of insurance beforehand helps you find the best insurance policy and saves you a lot of time.

These steps help you understand which insurance is the best fit for you to get the best insurance coverage at the best price.


Apr 5, 2022

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