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How to Buy Life Insurance

Written by Aaron Pinkston, Sat, Oct 10 2009

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Many people wonder what the best way to buy life insurance is. There are many options online. But there are also ways of buying life insurance over the telephone and in person. What’s the best way?

I’ve been on both sides of the fence. I have bought insurance and I used to sell life insurance and even support other insurance agents for years. Here are some tips from an insider’s perspective on the best way to buy to life insurance.

Identify your life insurance needs first. Simply put, figure out why you need life insurance. Once you know the “why” answers to other questions come easier. Figure these things out in advance – before you go shopping for life insurance quotes.

  1. How much life insurance do you need?
  2. How long would you like your policy to last?
  3. How important is price to you?
  4. How important is guaranteed coverage to you?
  5. How important is the financial strength of the insurer?

You don’t have to have these nailed down firm, but talk it over with your family and even write it down to give you an idea. A few minutes clarifying your goals can save days or even weeks of headaches. What does your shopping list look like? Write it down.

Try to consider as many life insurance companies as you can. Not all life insurance companies offer the same coverage for the same price. Choosing the right life insurance company to buy from could save you 60% or more for the exact same benefit to your family.

Looking at many life insurance companies to buy from (or having agents look for you) helps improve your chances of finding the best life insurance company for you. More competition usually means better results for you.

Get the opinion of more than one life insurance agent. Now that you have an insurance agent looking at all the life companies to buy from, find a few more agents.

Let’s face it, buying life insurance is about you and your family. It is not about the agents. Although many can offer help, some are biased towards the companies that pay the most. Ultimately, no single agent or company can know what all life insurance companies have to offer. That’s why you need multiple agents competing for you.

If you can get quotes from multiple agents without any sales pressure, you are one more step ahead of the game.

Understand your life insurance policy before you buy. I may not need to say this, but if you buy a policy because the slick insurance agent used confusing language, a lot of hype, or emphasized whiz-bang features that aren’t on your shopping list, you may have made a mistake.

Focus on your life insurance needs when you buy life insurance. Make sure you understand the policy, its moving parts, the guarantees, and what you get for the money. When your choices are clear, choosing is easy. Follow these easy tips to make buying your life insurance policy a breeze.