Where to Buy Life Insurance
PLEASE NOTE: WE ARE NOT LICENSED ATTORNEYS, INSURANCE AGENTS, THERAPISTS, CERTIFIED PUBLIC ACCOUNTANTS OR FINANCIAL PLANNERS. THE INFORMATION CONTAINED IN THIS WEBSITE IS NOT A SUBSTITUTE FOR PROFESSIONAL LEGAL, FINANCIAL, OR MENTAL HEALTH ADVICE. IF YOU HAVE QUESTIONS OR CONCERNS ABOUT YOUR SPECIFIC SITUATION, WE ENCOURAGE YOU TO CONSULT WITH THE APPROPRIATE LICENSED OR CERTIFIED ATTORNEY, ACCOUNTANT, FINANCIAL ADVISOR, INSURANCE AGENT, OR THERAPIST.Life insurance should be a key component in the financial plan for most families preparing for the death of a loved on whom they are dependent in some way. Historically the main questions around life insurance are how much, when should we have it, and what type. In this week’s tip we’ll discuss the pros and cons of the different ways to acquire life insurance.
Directly through a Traditional Insurance Company
If you’ve done your research and you know what company you want your life insurance from, you can often buy the insurance directly. This is especially true if you want term insurance as it is the simplest of all the forms of life insurance. You pick how much coverage you want, the length of the term, and then depending on how you answer some health information questions, you’ll receive a quote. Now-a-days, this will all be done online. Some companies may have an agent follow up with you to clarify some information or if your circumstances are for some reason beyond the scope of the typical policy.
Through an Agent
If your homework has led you to a particular company but you don’t feel comfortable submitting information online, have questions, need guidance, or if you feel a permanent policy is for you, then working directly with an agent might be your best option. They represent the company and all their different offerings and can help guide you through the process.
Through a Broker
A broker is like an agent, but the broker can sell life insurance from several companies rather than a single insurer. Once you share all the pertinent information, the broker will collect proposals from multiple companies and allow you to choose the one that fits your needs best.
Online
As technology continues to evolve and grow, online only insurance companies are emerging. These companies often will focus mostly on the simplicity of term policies because they are the most straightforward. Premiums can be less expensive than traditional insurers because they don’t have the overhead of agents, brick and mortar offices, etc. Because they are newer, however, they don’t have the history of payouts and often it can be harder to connect with a real person if you have questions.
Regardless of which route you go, do some homework. Read reviews. Talk to friends and family members about their experiences. Each of these options have good, honest people who want the best for you the client. But like all industries, there are bad apples in every bunch who may try to sell you something you don’t need because it’s better deal for the company or for their own bottom line.
