Most Americans agree that having a life insurance policy is extremely important. In fact,  85%  of American consumers say that most people should have life insurance. Despite this high number, however, in 2010 only about 44% of households in the United States had one member with life insurance.

In 2018, this number increased to  60% , but even so, only one in five Americans say that they don't have enough coverage. Most Americans who don't have a life insurance policy say it's too expensive. Other Americans say they don't have life insurance because the application process is too time-consuming or too confusing. Some believe they don't really need it.

If you are one of the many Americans who doesn't have life insurance but you want to learn more about it, here are the answers to four frequently asked questions regarding life insurance.

1. How Do I Apply for Life Insurance?

Most insurance agents sell life insurance, which means that you can apply for a policy with an agent. Because rates can vary, you may want to get a quote from several agents before applying. During the application process, you'll need to disclose your medical history and other factors that could affect your policy.

Once you've filled out the application, you'll need to get a medical exam. Doing so will help to determine your eligibility, along with how much you'll need to pay for the policy. Once your exam has been completed, your application will be reviewed. This review process is called underwriting and can take a couple of weeks to complete.

2. How Much Coverage Do I Need?

Some financial experts believe that when it comes to term life insurance, you should get 10 to 12 times the amount of your income. In other words, if you have an annual income of $50,000, you should have at least $500,000 in life insurance.

Besides your annual income, some factors to consider when figuring out how much coverage you'll need include:

When thinking about how much life insurance you need, the number one priority is having enough coverage that your dependents will be provided for in the event that something happens to you.

3. What If I Get Denied?

Certain factors affect whether or not you qualify for life insurance and how much coverage you will be able to get. Some of these factors include:

Some of the primary reasons that people get denied for life insurance include obesity, a liver damaged due to alcohol use, blood or protein in the urine, or a hazardous occupation.

If you do get denied, you should find out the specific reason for the denial. Depending upon the reason, you can try to apply with another insurance company. If you were denied for health reasons, you can try to improve your health and then reapply at a later time.

4. What If I Can No Longer Afford My Policy?

If you do get accepted for life insurance and run into a situation where you can no longer afford to pay the premium, you can either reduce the face value of your policy or reduce your premium payments.

If all else fails and you are over the age of 65, you can sell your policy. If you need to sell your  life insurance policy , contact Habersham Funding, LLC, to see how we can help.