Life insurance is meant to complete your financial plan. While you help to pay for all the things your family needs in life, life insurance allows you to continue paying for those same things after death. The life insurance protects your beneficiaries from debts and cost of funerals.

1. Learn the vocabulary

· Death benefit — The amount of cash paid out to your beneficiaries when you die. It’s one of the most important decision you will make when taking out a policy, as you want it to be high enough to cover your family’s expenses.

· Premium — The amount you pay monthly or annually to keep your policy active.

· Term — The period your life insurance policy lasts, as long as you’ve been paying the premiums, if you buy a term life insurance policy. Other types of life insurance, such as permanent and other cash value life insurance, last your whole life instead of just a term.

· Beneficiary — The person or persona you list on your policy to receive the death benefit after you die.

· Policy — A document you receive from your life insurance company explaining the details of your coverage. It will also list the conditions that must be met for the policy to be paid out, and failure to meet those conditions could cause a delay in a payout or cancel it entirely.

2. Decide how much life insurance you will need

Remember, the purpose of life insurance is to make sure your family isn’t left with finical burden.

 Married: leave a financial cushion for your spouse but you want to make sure they can continue paying off the loans you co-signed. Like your mortgage, your spouse could lose the house if they are unable to continue making the payments. So, make sure you factor in any debts that they may have to cover when determining how much of a policy you will need.

Children: factor in how much you currently pay towards child care when determining the amount for your policy. But you may want to a count for future expenses like college tuition.

So, add up all these expenses to get a sense of what you’ll love ones will need after you pass away.

3. Get a free quote

Getting a free quote is easy. you can do it right here. All you have to do is go to our “life insurance page” and click “get a free quote.” Once you complete and submit the short form an agent will reach out to you will different plans and prices for you to choose from.

Most people pick the cheapest policy that has the coverage they need, but it’s important to compare other features and benefits.

4. Documents you need

To make the application process as easy as possible make sure you have all your documents in order.

· Proof of identity, citizenship and age: like driver’s license, birth certificate or valid passport. Noncitizen resident can use their green car or employment authorization card.

· Proof of income: like pay stubs, letter of employment, tax return. If you are unemployed you will need to so your monthly statements with your benefits listed.

· Proof of residency: for homeowners, your mortgage bill or property tax statement. For renters, your signed lease or a rent receipt.

5. Wait for approval

Now that a broker or agent has submitted all your information. An underwriter, who works for the carrier, will calculate how risky you’re going to be to insure. The underwriter’s job is basically to confirm whether you actually get the rate you were originally quoted; this process can take a couple of weeks.

6. Sign the dotted line

Once the underwriter completes his or her work, you officially own a life insurance policy. All that is left to be done is for you to sign the policy and start making your payments.

 Finally, make sure you keep a copy of the policy safe and let your beneficiaries know where the policy is and how to access it. If your beneficiaries don’t know about the policy, they won’t know to claim the death benefit. 

Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance. 

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