Apply and compare with care

A life insurance quote is not always a final offer. Insurers may consider age, health, tobacco use, occupation, and other information allowed by law. Underwriting is the review used to determine eligibility, price, and terms. Some applications require an exam; others do not. No exam does not necessarily mean no health questions or an immediate full death benefit. Answer accurately and review the application before signing.

Compare the coverage amount, duration, guaranteed premium schedule, exclusions, riders, and any waiting or graded-benefit provisions. Ask when coverage actually begins and what conditions must be satisfied. After receiving a policy, use the applicable free-look period to examine it; deadlines and refund rules vary by state and policy. If considering replacement, examine surrender charges, lost benefits, new underwriting, and restarted policy restrictions. Keep existing coverage until the new policy is issued, accepted, and confirmed in force, and evaluate the consequences before canceling.

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