Before you actually look at life insurance policies, calculate how much protection you'd like from your chosen policy. This will be the death benefit you look for. Death benefits are simply what policies pay if a covered individual passes away.

If you're getting insurance to replace your income, there are a few guidelines you might consider:

• Purchase 10 times your annual income
• Purchase 10 times your income plus $100,000 per child
• Purchase enough to cover debts, future income needs, and any kids' college expenses

In the last formula, debts include the mortgage on your house. The other two formulas assume your loved ones could invest the death benefits and see a 10 percent average annual return, allowing them to withdraw one-tenth of the benefits each year without touching the principal. The S&P 500 has averaged a 8 percent return over the past approximately 60 years.

If you're getting life insurance only to cover some other potential expense, such as your funeral and burial expenses, find out how much the expense will be and get a policy for that amount.

Step 2: Determine the Coverage Duration

After you've calculated how much coverage you want, determine how long you want that coverage for. Some people want life insurance that will last their entire lives, including through retirement. Others want insurance only for while they're raising dependents or saving up for retirement, which could be anywhere from a few years to a few decades.

If you want life insurance that will last throughout your life, you'll want to look at whole or universal life policies. If you want insurance for only a certain duration, you'll want a term policy. These provide coverage for a specific number of years.

Step 3: Provide Basic Information

At this point, you're ready to actually start looking at different policy options. You'll have to provide some basic information both about the policy you want and about yourself. Expect to provide details like your:

• Desired death benefit limit and coverage duration
• Age and gender
• Height and weight
• Blood pressure
• HIV status

All of your answers will be checked later. Providing truthful information will help ensure your quotes are as accurate as possible.

Step 4: Compare Quoted Policies

Based on your information, you'll receive quotes for different policies. Compare the various quoted coverages and rates, and select the life insurance policy that best meets your needs. You'll purchase the policy at this point, including paying the first month's premium.

Step 5: Go Through a Medical Exam

Most insurance companies will have you go through a medical exam after you sign up for one of their policies. The purpose of a medical exam is to give the insurance company the most accurate and current information possible.



Although this process may seem daunting, this may be the easiest medical exam you ever have. A qualified professional is normally sent to your home or place of work to complete the exam, and you can schedule it for a convenient time. The exam itself involves little more than taking vital signs, drawing some blood, and answering a few simple questions.

Step 6: Complete the Underwriting Process

After the medical exam, the insurance company will finish the underwriting process. They may have a few more questions for you depending on your situation, but they'll contact you once they are ready.

Once underwriting is complete, your policy is finalized. Your premiums may be adjusted slightly up or down from the initial quote.

To begin the process of finding life insurance, contact American Quality Assurance Group.