Life insurance provides financially for your loved ones after you die. It’s not sold on store shelves, but you have several options for buying a policy that meets your needs.
Single-Company Agent
A single-company agent sells life insurance from only one company. He or she meets with you to discuss your needs and then provides policy options. Typically, the agent is paid by commission that’s loaded into the premium’s cost. With this option, you always talk to a live agent. However, you’ll need to do your homework to make sure you’re getting the best available price and coverage.
Broker
A broker offers life insurance from several different companies. You’ll share your financial needs, and the agent will check the database for the company that best meets your needs. This purchasing option increases your ability to choose the most affordable policy and comprehensive coverage for your needs.
Fee-Only Advisor
A fee-only advisor sells insurance from one or multiple insurance companies. He or she does not receive a commission on sales, so you may experience less pressure to buy. Since fee-only advisors are not typical, do an online search for “no load life insurance” if you want this option.
Employer
As a perk for employees, your employer may offer group life insurance. It’s usually a term policy with a low death benefit, and the premiums are subsidized by your employer or deducted from your paycheck. If you leave your job, you may convert the term policy to a whole life policy with the company that issues the insurance. Consider this option if you are older, experience health problems or want an extra policy just in case.
Organizations
Your labor union, trade group, college alumni association or auto club may also be an option for group life insurance. The policy will be a term policy with a low death benefit that’s beneficial if you need an affordable option because of your age or health.
Financial Institutions
Your bank or credit union may offer life insurance for minimal cost. The death benefit is usually low, no medical exam is required and you can assign any beneficiary you want.
Financial institutions and credit card companies also sometimes offer life insurance solely to repay an outstanding loan with the institution. It may be included in the loan at no additional cost, or you may have the option to buy the coverage for an additional fee. Compare the cost of this policy and your assets before signing up.
Life insurance is a wise investment. You have several options when purchasing a policy, so do your research as you decide where to buy valuable life insurance.
