How to Buy a Term Life Insurance Policy

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Buying a term life insurance policy always requires you to keep a few key things in mind. Buy a term life insurance policy with help from a certified financial planner in this free video clip.

Part of the Video Series: Insurance Basics
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Video Transcript

Hi, my name is Karen Lee. I'm a certified financial planer and the owner of Karen Lee and Associates and a registered representative with LPL Financial. Today, we want to talk about how you go about buying term life insurance. The first thing you need to do is to start with getting a quote. Now you can do this in one of two ways, you can go online and use some of the many varied quotes systems that are available and search through different companies and find a quote that you're comfortable with, but you can also simply find an life insurance agent. There is no difference in premium between doing the quote online and going directly to the insurance company or going through an agent. So once you get your quote, you've determined now which type of term life you want to buy and what company you want to buy with, the next step is to starting filling out an application. With the application is going to ask for a lot of personal information, of course your name, birthday, social security number, where you were born, where you work and it's also going to ask for a very thorough medical history over the last 10 years, so be prepared to report every time you've seen a doctor, any surgeries or hospitalizations that you've had during usually a 10 year period of time. Finally they're going to ask for a family history, they're going to ask what your parents if they're alive, how they're health is, if they've died, what age did they die of and what did they die from. Lastly you're going need to typically need to complete a blood work and a urinalysis, you will find out while you were applying how to go about doing that and of course in the blood work they'll be checking for AIDS other sexually transmitted diseases, drug use, nicotine use, alcohol use, et cetera. Once you've completed that application process and done what ever other requirements, like the blood and urine that are required by the insurance company the next step is up to the insurance company. They'll review your information, they might ask to get some of the medical records for your doctors and they await the results of your blood work at that point the insurance company will come back to you and make an offer. Hopefully the offer is exactly what you applied for, but sometimes they'll offer you at a little higher rate or sometimes a little better rate that what you applied for. Once you get your offer simply paying the premium and usually turning in a policy delivery receipt completes the process and you are fully insured. So I hope that answers your question about the process to buy term life insurance. My name is Karen Lee, I'm the owner of Karen Lee and Associates, a certified financial planner and a registered rep with LPL Financial.


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