Shopping for Insurance

8 smart steps for buying life insurance

Life insurance can form a vital part of your family’s financial stability and well-being but, if you’re like most people, you may find the thought of shopping for the right type of coverage a little daunting. Fortunately, these eight simple steps can guide you along the way.
 

The i's on insurance: Life insurance

Share

Life insurance is a vital part of your family’s financial stability and well-being. But if you’re like most people, you probably have questions about what types and amounts of life insurance are best for your needs. Spend a few moments to see why planning for your family’s future isn’t just about money; it’s about life. 

 

Be sure to tune in to the other videos in "The I's on Insurance" series for helpful knowledge for drivers, homeowners/renters, and small business owners.

 


Copy the following code and paste it in your HTML...
<object width="480" height="385"> <param name="movie" value="http://www.youtube.com/v/R_wTA2-uCf4&hl=en_US&fs=1&"></param> <param name="allowFullScreen" value="true"></param> <param name="allowscriptaccess" value="always"></param> <embed src="http://www.youtube.com/v/R_wTA2-uCf4&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed> </object>

How to save money on life insurance

There are ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. As your top priority, look for a policy that meets your needs. Buying the wrong benefits for a low premium is a waste, not a saving. Beyond that, here are some ways to maximize your life insurance dollars. 

 

Before you buy 

Once you’ve determined what type of life insurance product to buy:

How should I choose a life insurance agent?

When you’re considering buying life insurance, it’s important to choose an agent or broker who can help you. Buying life insurance can be complicated or confusing. The key to buying the right amount and the right type of policy at a good rate is a good agent or broker. You should choose one who:

How do I pick a life insurance company?

Roughly 1,000 life insurance companies sell life insurance in the U.S., but many are members of groups of companies and so aren’t really competitors with each other. Having separate companies enables a group to offer its products through separate distribution channels, to more efficiently meet the regulatory requirements of particular states, or to achieve other organizational goals. There are an estimated three hundred company groups.

Reasons to purchase permanent life insurance

A permanent life policy provides lifelong insurance protection. The policy pays a death benefit if you die tomorrow or if you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.

How to choose the right type of life insurance

Choosing the right type of life insurance can be confusing, but it’s also an important decision. Here are some guidelines that can help you narrow down your best life insurance options.

 

How is life insurance sold?

You can buy life insurance either as an “individual” or as part of a “group” plan.

 

Individual Policy

 

How do I pick a life insurance company?

The annuity business, like the insurance industry itself, is very competitive. There are hundreds of insurers and many different types of products available to you. Before buying an annuity, contact your state insurance department to see whether it offers an annuity buyers guide for your state.

There are four important things to consider: