Different Ways to Buy Life Insurance

There are so many factors to consider when buying life insurance. What policy to choose? How much coverage is needed? What premium can you qualify for? Making a choice can be complicated and often confusing. The key to making the correct decisions can depend on how and where you buy your life insurance from. A good broker, a comprehensive online provider, the right agent can hold the key to all your questions. Read on to find out the different ways to buy life insurance and which option would suit you best.

1.Through an Agent, Broker or Salesperson
This is the time and tested medium of buying life insurance. Deciding on what kind of insurance and how much to buy becomes easier with the help of a qualified insurance professional. An agent, financial advisor or a broker will analyze your current financial situation and determine your long term needs and goals to help you determine the best insurance for your individual needs. The quality of advice you get will obviously depend on how experienced and trained your agent is. There are certain things you should check up on before finalizing with a particular agent or broker i.e.:

1. Check the agent’s license from the state they do business in. Check with the licensing agency that there are no pending disciplinary proceedings against the agent.
2. Also check with the Better Business Bureau about any consumer complaints filed against a particular broker or salesperson.
3. Get referrals from people you trust such as family or professional colleagues.
4. Speak to a number of agents or brokers before signing up for anything. Also compare prices and products offered to see which ones best suit your needs.
5. Inquire about your agent’s training and certification. Designations such as Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Certified Financial Planner (CFP), Financial Services Specialist (FSS) and Life Underwriter Training Council Fellow (LUTCF) all indicate a professional level of expertise.
6. Find out about which areas your agent specializes in. Some might be experts in long term care insurance whereas others might deal only with life insurance.
7. Check if your agent or broker has tied up with a specific insurance company or product (the odds are that they have). In such cases, be wary of the fact that you might get only a one sided picture of the pros and cons of various products. It is therefore necessary to shop around before buying. If you get too much hard sell, consider someone else.

At the end of the day, a good agent or broker is one who is a good listener and one who takes the time to understand your objectives, help you create a financial plan, and then help you find the best life insurance products for your specific situation.

2. Through Your Workplace
Another option to purchase life insurance may be through your employer. Many employers provide a basic, ‘no cost’ insurance to all their employees (normally not more than one or two times your basic salary). You first need to find out how much you are covered for under this policy and then decide how much more you need to purchase. Since most experts recommend coverage of at least ten to twenty times your net income, your basic work insurance does not count for much. Check if your employer offers you the option to purchase additional coverage through their group plan. However, also keep in mind that if you have group insurance and you leave your job, your insurance is not transferable.

In case your office or workplace only offers life insurance on a voluntary, employee-paid basis, do not write off this option immediately. You might have to pay the full premium but voluntary plans allow you greater coverage more easily than if applied for individually or even through a group plan. Premiums are mostly paid through automatic payroll deduction, which can lessen rates by as much as 10% to 20% as well.

On the whole, life insurance in your workplace should be treated as a supplement to what you purchase on your own. It should never be all the insurance you have. This is mainly because you will not be able to maintain your insurance if you either leave your job or even become disabled or injured and cannot work anymore.

3. Through the Internet
The Internet has made affordable life insurance a possibility for everyone. You can now get instant quotes, apply for, and even purchase policies online. An accredited online insurance provider will offer objective, independent information as they will rarely be owned or controlled by any one insurance company. Opting to purchase your policy online can help you cut to the chase and avoid hours spent on high pressure sales pitches and often confusing advice by agents or brokers. Many sites provide free insurance quotes in minutes that help customers make well informed decisions from hundreds of policies available. Having databases of thousands of products also allows for online sites to find the most affordable options for every client. After considering your health and lifestyle profile, you are then offered the most affordable policies along with various options such as riders, renewability privileges and conversion rights. With the amount of resources available and the availability of trained professional to talk you through your choices and the application process, buying your policy online has now been reduced to a simple painless process and one worth investigating.

4. Through Mail or Over the Phone
Direct buying can also entail direct solicitations through mail or marketing via toll-free numbers. This method is recommended if you have a clear idea of what you want to buy and which product is the best for you. Just be aware of the possible limitations of buying direct which could include limited choices and no advice from qualified insurance professionals.

5. Through the Insurance Company
You can even buy your policy directly from the insurance company once you have decided on what you want. Keep in mind that the cost will be the same but you will not get the benefit of multiple choices or unbiased recommendations.

About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.