How do I buy life insurance?

You have several choices. You can purchase from an 800 number or an online quote center or the smart way - by working with a quality agent. The price is the same. We suggest you ask around an locate an agent that has your interest at heart and can provide multiple choices from multiple companies. The agent will start with the easy question - Why do you want Life Insurance. Once they understand your needs then they can determine what way to best serve those needs.

Everyone has different needs when it comes to life insurance.  We have found that the search for life insurance usually starts with getting a term quote from a website. There are several different types of life insurance - term life insurance being the most popular due to the low cost.  Term is limited to a certain length so be sure that you know how long you need the coverage before you buy.  It is a good idea to speak with a life insurance professional to guide you through the process.  They can help you assess the amount of coverage you need and for how long.  

Buying life insurance involves several steps to ensure you get the right coverage for your needs.

Here is a guide to help you through the process:

1. Determine Your Needs

• Assess Your Financial Situation:Consider your current debts, mortgage, daily living expenses, future education costs for your children, and your income replacement needs.
• Calculate the Coverage Amount: Use an online life insurance calculator or work with a financial advisor to determine the amount of coverage you need.

2. Choose the Type of Policy

• Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, or 30 years). It%s usually less expensive and straightforward.
• Whole Life Insurance: Offers lifelong coverage and includes an investment component known as cash value.
• Universal Life Insurance: Provides more flexibility with premium payments and death benefits and includes a savings element.
• Variable Life Insurance: Combines death benefits with investment options, allowing you to invest the cash value in various sub-accounts.

3. Compare Quotes

• Research and Compare: Use online tools to compare quotes from different insurance companies. Make sure to compare similar types of policies and coverage amounts.
• Consult an Insurance Broker: A broker can provide you with quotes from multiple insurers and help you understand the differences between policies.

4. Choose a Reliable Insurance Company

• Financial Stability: Check the financial ratings of the insurance companies through agencies like A.M. Best, Moody's, or Standard & Poor%s.
• Customer Service: Read reviews and ask for recommendations from friends and family.

5. Apply for the Policy

• Complete the Application: Provide accurate information about your health, lifestyle, and financial situation. Be honest, as discrepancies can lead to denial of coverage.
• Undergo a Medical Exam: Many policies require a medical exam to determine your health status and premium rates. Some insurers offer no-exam policies, usually at higher premiums.

6. Review the Policy

• Policy Details: Carefully review the policy document, including the coverage amount, premium, term length, exclusions, and riders (additional benefits you can add).
• Clarify Doubts: Contact your insurance agent or company to clarify any doubts or questions you may have before finalizing the purchase.

7. Purchase the Policy

• Sign the Documents: Once you are satisfied with the policy terms, sign the required documents to purchase the policy.
• Pay the First Premium: Make the initial premium payment to activate the policy. Ensure you understand the payment schedule (monthly, quarterly, or annually).

8. Keep Your Policy Updated

• Review Annually: Review your policy annually or after significant life events (marriage, birth of a child, etc.) to ensure it still meets your needs.
• Update Beneficiaries: Ensure your beneficiary information is up to date.

Tips:

• Understand Riders: Riders are additional benefits you can add to your policy, such as critical illness cover or waiver of premium. Evaluate if these are beneficial for your situation.
• Consider Employer Options: Check if your employer offers group life insurance, which can be a cost-effective supplement to your personal policy.

By following these steps, you can navigate the process of buying life insurance and ensure that you have the coverage you need to protect your loved ones.