The Radical Guide to Life Insurance: How to buy a policy

Finding term life insurance quotes. Term life insurance is a commodity. Prices can be found on the Internet. You can probably see a number of term life insurance companies advertising their services on the right side of this screen. Though we are compensated if you click on these ads, this is a good way for you to get a feel for competitive prices for term life insurance.

Fee-per visit advisor. Hiring the right advisor is one of the most important decisions you will make especially when it comes to buying permanent life insurance. While term life is becoming increasingly commoditized, permanent life insurance remains complex. You will need someone to help you navigate the complexities of permanent life. Look for someone with advanced designations, and seek an experienced, independent advisor who charges per visit.

Contact an agent. Once you have identified a reasonable price quote and spoken with an advisor (for permanent life buyers), contact an insurance agent and ask him to match it. Keep in mind that there are instances where you are quoted a rate on the Internet only to find out some weeks later that you don’t actually qualify for that rate. So contacting an agent is the best course of action once you have identified a quote to your liking.

Certified life insurance agent. Ideally you want an agent who is certified as a Career Life Insurance Agent. Complicated policies require certified, experienced individuals. With a high turnover rate amongst life insurance agents be sure to do a thorough search before choosing one to work with.

Things to look for in an agent. You want to find an agent who has many years of experience specializing in the sale of life insurance. You want him to have a clear understanding of your needs and an interest in building a long-term relationship with you. Why? You will undoubtedly have ongoing needs and questions that only he can answer.

Call your insurance company. One way to find an agent that fits your criteria is to call your insurance company and ask for a list of their most experienced agents. You might even consider checking their references.

Don't buy simply on the basis of cost! While we are all on the lookout for great coverage at the lowest possible price, you must avoid buying coverage simply based on cost. Your loved ones are counting on you. Don't disappoint them by choosing cheaper coverage than you need.

Pricing information. No-load permanent life insurance policies are offered by TIAA CREF and USAA Life Insurance. You can also obtain substantial savings from low-load commission policies. But beware of associations and 1-800 numbers (unless you are uninsurable and have no choice). Buying insurance straight from the insurance company can save you 10-15%.

Check the ratings. Make sure to check with a ratings agency such as A.M. Best, Moody's Investors Service or Standard and Poor's before you buy life insurance. You want to be satisfied with the financial health of your insurance company so that your beneficiaries are assured of a death benefit and / or cash value payment. If your insurance company gets in trouble, you run the risk of losing everything.

Table of Contents
Next Chapter