Life Insurance: Buy Smart

With the convenience of the Internet, the process of buying life insurance, has become much simpler. The following steps will help take the mystery out of insurance along with helping you get the policy that fits your needs. request rates online >>

• Decide what kind of insurance to buy. Depending on the purpose, you may want Term, Whole Life, or Universal.
  
  
• Do some personal analysis to determine the amount of coverage you actually need. You can either compute an income multiple—your annual earnings multiplied by at least 3 and preferably 5—or you can add up your outstanding debt and estimate your family's needs. Use our free life insurance calculator to determine an estimate of the face amount you'll need.
  
  
• Take advantage of our user friendly service to complete a profile and then either shop rates yourself from the online quoting engine or request a local agent to prepare quotes for you.
  
  
• While waiting for your cost quotes to be prepared, you can check the ratings on several companies. You want a company that is strong financially, has been in business a long time and that pays claims in a timely manner.
  
  
• If you decide to meet with an agent personally, be prepared to ask some pointed questions:
  
  
  • To what extent would that agent represent you?
• Does the company have policies that will last to age 100 or even to 120.
• Does the company have radically higher rates for smokers
• Does the company require a visit from a paramedic? Some companies only require a paramedical exam and doctor's report on amounts of 100,000 or more.
• Does the company have an "easy issue" policy that requires less medical underwriting and that pays without a two year waiting period?
• What payment process does the company use? Most require you to make the first payment and then authorize automatic bank draft for future payments.
  
  
• Strongly consider using an agent. Life insurance does not have standardized language from one company to the other. If you try to do it alone, you could easily end up with something like "modified whole life," a type of whole life that has cash value and insures you to age 100, but also has premiums that increase at a predetermined frequency. If an agent misinforms you regarding a policy, the company is responsible. If you make the decision on your own, you bear the responsibility even if you don't understand the terms.
  
  
• Once you have decided on a policy and answered the questions for the application, all you have to do is wait. You still aren't fully committed. By law, you have a 30 day free look from the time your policy is delivered to you. If you see something you didn't expect or didn't want, you can return it and have your first payment refunded.

Usually, a little preparation, an open mind and an understanding of the process can virtually guarantee a policy that will satisfy you and your family for many years to come.

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