Life insurance is a wonderful way to provide financial security for loved ones. Certain events and circumstances are beyond our control, and should something happen, the most important people in your life would be protected with life insurance.

There are many types of life insurance available, and it can seem overwhelming, especially if you are choosing an option for the first time. Luckily, we’re here to help you navigate the process stress-free.

Getting life insurance for the first time: 10 tips

Getting life insurance for the first time can seem intimidating, but it doesn’t have to be, and a little guidance can go a long way. Below are ten tips designed for those considering life insurance for the first time. We’ll walk you through understanding your life insurance needs, getting a quote, and ensuring that the application process is as smooth as possible.

1. Understand different life insurance policy types

Life insurance falls under two main categories: term life and permanent life insurance.

Term life insurance: This type of insurance protects your family for a set period, often between 10 and 30 years, when you need it the most, such as when you’re paying off a mortgage or raising children.

Permanent life insurance: A permanent life insurance policy remains in effect for life as long you pay the premiums. There are added benefits to permanent life insurance, too, like the ability to build cash value that you can access while you’re alive.

Understanding the types of life insurance can help you choose a policy that’s well-suited to your financial and life situation.

2. Know what affects your quote

There are a variety of personal factors that affect how much you’ll pay for insurance, including:

• Age: The older you are, the more you’ll pay for a new life insurance policy. In fact, it’s one of the most significant factors considered for life insurance premiums.
• Gender: Women have longer life expectancies than men and, in many cases, pay less for the same amount of life insurance. However, several states are moving towards unisex legislation that prevents men from paying more than women.
• Height & Weight: These health statistics can help determine whether you will develop a condition in the future that can shorten your life.
• Medical history: Insurers may assess your current health through a medical exam and ask questions about your health history. A personal history of certain diseases, like cancer or heart disease, could result in a higher life insurance premium.
• Family History: Family health history provides a glimpse into your potential future health conditions. Some of the conditions that insurers look for include:
  • Cancer
  • Diabetes
  • Kidney, liver, and heart disease
  • Alzheimer’s disease, especially early-onset conditions
  • A family history of drug or alcohol dependence
  • Sudden, unexplained death before age 50
• Smoking, Tobacco & Vape Use: If you use these substances, even occasionally, you may pay more for life insurance. Even marijuana users are subject to this increase, but some insurance companies have loosened restrictions.
• Occupation & Hobbies: High-risk jobs are important and heroic, but they are also more dangerous. It can be difficult and more expensive to obtain a life insurance policy if your job falls into categories such as:
  • Construction worker
  • Active military member
  • Natural resource worker
  • Aviation worker
  • First responder
• Participating in adventurous hobbies, such as racing cars or rock climbing, can impact how much you pay for coverage and your eligibility for some insurance plans.
• Lifestyle Factors: Other lifestyle factors can affect your health and safety, such as your driving record, criminal background, foreign travel, and financial history.

The factors listed above can affect your life insurance quote and may be reason for you to evaluate your health and lifestyle choices.

3. Figure out your needs

There are certain needs to consider before choosing a policy. Some questions to ask yourself include the following:

• Do you have funds set aside to cover funeral expenses?
• Do you plan on providing for a family member, like a spouse, child, or parent, for a certain period?
• Would a loved one have to pay off the mortgage if you pass away?
• Do you have a business to protect?

These questions can help you determine how large of a life insurance policy may be best.

4. Know how much coverage you want

Based on your current and anticipated financial requirements, you can determine what size life insurance policy is best. For example, let’s say you have $100,000 left on a mortgage and you want to leave enough to cover your child’s education at $50,000 a year. A $300,000 life insurance policy could provide your family with enough money to meet those financial needs.

5. Consider Riders

Life insurance riders include optional terms or conditions that can be added to life insurance policies, tailoring these policies to specific situation, like protecting against inflation or accidental death. You can add many riders at little or no cost to expand coverage if you meet certain conditions.

6. Compare policies

Comparison, in the case of life insurance, is healthy and productive! Get quotes for multiple policy types, weigh the positives and negatives, and compare policies until you find a policy that fits your price point and coverage preferences.

7. Get ready for your application

Once you have chosen a policy, be ready to provide the necessary documentation, such as your medical history and employment records, to make the process run smoothly. The application will also ask how often you would like to be billed. It is important that you and your loved ones are on the same page regarding the frequency of these payments and that you have the means to pay.

8. Be honest on your application

A life insurance application is a legal document, and insurers have ways of confirming whether the information you provide is legitimate. Therefore, be sure to be honest and transparent. Failure to do so could mean your loved ones may receive a reduced or denied benefit.

9. Take your medical exam, if needed

Not all policies require a medical exam. However, if they do, here are some best practices for taking a medical exam:

• Eat healthily and drink water: Food and water affect your blood work, so your blood work may improve by eating healthy and drinking plenty of water.
• Think about fasting: When scheduling your physical, ask if you should fast for eight hours before the exam. Eating right before can affect cholesterol and glucose levels.
• Take it easy: Consider skipping the gym 24 hours before your exam. Exercise, especially cardio, can affect pulse, blood pressure, cholesterol, and protein levels in your urine.
• Get a good night’s rest: Sleeping well the night before may make you feel better, and your vital signs will reflect that positive change.
• Wear light clothing: Your weight will be more accurate by wearing lighter clothes, as weight can affect insurance rates.

Fidelity Life’s RAPID ecision® Life gives you up to six months to fulfill the medical exam requirement if needed, giving you plenty of time to fit your exam into your busy schedule.

10. Choose your beneficiaries

Choosing your beneficiaries can be a difficult decision, as beneficiaries receive the payout from your life insurance policy if you die.

A beneficiary can be a person or an organization. You can also opt to split the payout between multiple beneficiaries. However, bear in mind that the more beneficiaries you have, the less money each beneficiary will get.

It may be a good idea to designate a secondary, or contingent, beneficiary to ensure that life insurance death benefits go to someone you choose if the primary beneficiary cannot receive them.

Ready to find a life insurance policy?

Starting to look for life insurance is a step in the right direction. Finding the right policy means knowing that your loved ones will be taken care of and your expenses will be covered. Ready to get started? Get your quote today or reach out to one of our agents at (855) 376-2168.