Starting Your Life Insurance Plan

By john@panago.info   2024/09/30

After consulting with your financial advisor, you’re ready to begin your life insurance journey based on your needs and budget. Here’s what to do next:

  1. Complete an Application:
    • You can apply for life insurance individually or combine it with coverage for family members, disability, and critical illness.
  2. Choose Your Meeting Format:
    • In-Person: Traditional settings like your home or the advisor's office.
    • Virtual: Use tools like Zoom or Microsoft Teams for convenience.
  3. Application Process:
    • Verification: Provide identification and contact information.
    • Coverage Selection: Check off your desired plan types and coverages.
    • Beneficiary Designation:
      • Designate primary and secondary beneficiaries (can include trusts, business partners, or charities).
      • Consider a trustee for minors until they reach legal age.
  4. Medical Questions:
    • Options:
      • Answer all questions with your advisor.
      • Complete a short questionnaire with follow-up by the insurer.
      • Skip the questionnaire and let the insurer handle it.
    • Medical Exam:
      • May be required based on age or coverage amount. Fast for 12 hours before the exam and provide a list of medications and doctor’s info.
  5. Doctor's Letter:
    • Usually needed based on age or because of medical history. Your advisor can help expedite this process if it takes too long.
  6. Application Outcome:
    • Approved Standard: Your quoted rate.
    • Approved Preferred: Discounted rates based on favorable criteria.
    • Rated Approval: Higher premium due to health factors.
    • Declined: No coverage offered.
  7. Final Steps:
    • Your advisor will inform you of the decision and deliver your policy.
    • Sign the policy and pay the first premium for coverage to take effect.

Helpful Tips:

  • Pay at least one month’s premium for temporary coverage while underwriting.
  • Be honest in your answers to avoid issues.
  • Ask your advisor about potential future reconsiderations for any ratings based on changes in health or activities.

For more personalized assistance, feel free to reach out at john@panago.info.

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