How to Buy Life Insurance

Buying life insurance is often a conceptually misunderstood topic, but, like anything in life, knowledge is power. AIG Direct is dedicated to providing steadfast support, expertise, and guidance throughout the process to help you feel secure in you and your family’s future. This easy-to-follow, practical guide will teach you how to buy life insurance and provide the tools and expertise you need to give your family the coverage they deserve, built to fit any budget.

Select the Best Life Insurance Product For You

There are no two households that are exactly the same. The same perspective should be utilized in the search for the right life insurance policy. Although there are two commonly purchased standard life insurance policies (Term Life Insurance and Whole Life Insurance), multiple products and coverages exist that can be customized and shaped to fit your family’s specific needs.

In order to start the process, ask yourself why you are looking to buy life insurance. Has there been a recent major life event, such as marriage, having a baby or growing a family, or changes in familial status, or do you simply desire the peace of mind of coverage through the unknowns in life?

With that in mind, now focus on what it is you would like your life insurance to cover. While this process may seem daunting without the right guidance, AIG Direct has tools to help you narrow down the answers to these questions, including help with identifying which type of life insurance suits your situation and answers to common questions pertaining to buying life insurance.

Determine the Amount of Life Insurance Coverage

There are a number of variables that go into deciding how much coverage your particular situation requires, including but not limited to financial situation, family circumstances, and marital state.

Also consider financial burdens, such as debt, mortgage, student loans, and child care, how long you foresee needing coverage for, funeral and burial or cremation costs, and how the beneficiary monetary value will be invested or held. For help gauging the amount of coverage right for you, visit our Term Life Insurance Calculator to determine how much life insurance you need.

Applying for Life Insurance

There are two ways to apply for life insurance through AIG Direct: navigating the process yourself through AIG Direct’s online self-service platform or by talking to a licensed life insurance agent. The best way to buy life insurance depends on your needs. Each has its own pros and cons we will discuss below.

The do-it-yourself option is perfect for those who are self-starters living busy lives. Customers can apply and purchase life insurance products such as Term Life Insurance and Guaranteed Issue Whole Life (GIWL). Customers also have the option to apply and purchase alternative insurance options like Accidental Death (AD&D) policies at any time from the comfort of home. This process can be started, stopped, and saved with the ability to resume where you left off. The lack of a licensed and experienced agent to consult with and guide you through the various products and rate options to meet your needs is the biggest detractor. Although AIG Direct supplies numerous tools to help you along the way, some may prefer to speak to a licensed representative.

For those that would like more precise facilitation, applying over the phone through a licensed agent could be the better option. Customers can talk directly to a licensed life insurance agent to determine which life insurance option most closely fits their specific needs and budget. To start your application, please call 800-294-4544 to speak with a licensed agent.

What to Expect When You Apply

There are a few key pieces of information to have on hand for use during your application, including your financial situation (salary and current debt), current and past medical diagnoses, general beneficiary information, and contact information for your primary care physician. Having this information prior to starting the application will expedite the process and save you valuable time and energy.

The application process itself can be easily broken down as follows:

  1. Receive a Life Insurance Quote. Can be done online or over the phone by providing basic information about yourself and what you are looking for.
  2. Complete the application. Full application and submittal.
  3. Medical Exam. Fast and easy medical examination to better determine eligibility and finalize rates. Note that not all products require a medical examination, such as Guaranteed Issue Whole Life Insurance.
  4. Underwriting. Application is reviewed, and insurance risk assessed. Expect final decision on rates and coverage within a few weeks.
  5. Coverage. Upon final underwriting acceptance and first payment, coverage is initiated.

The stigma surrounding buying life insurance can be easily dispelled through the right research and knowledge. For additional tips on how AIG Direct can save you time and money, talk with an agent today at 800-294-4544.