3 Ways to Buy Life Insurance

3 Ways to Buy Life Insurance

March 16, 2020

1. Through an Insurance Professional

Most people need help conducting the detailed financial assessment needed to determine how much and what kind of insurance to buy. That’s why they usually turn to a qualified insurance professional. To find one that’s right for you, ask for recommendations from friends, relatives or a trusted advisor, such as a lawyer or accountant. Before agreeing to work with an insurance professional, interview at least two to establish a basis for comparison. Ask them about their education, training, professional designations, and if they are a member of a professional association.

2. At Work

Many employers, especially larger ones, offer life insurance as part of their benefits package— usually a term policy equal to one or two times your annual salary—at no cost to you. This is called group insurance, a nice benefit to have, but it’s typically not enough to meet most people’s needs. If you need more coverage than your employer’s “basic” benefit, talk to your benefits manager at work. Many companies give their employees the option to purchase additional coverage through their employer’s group plan. Often, you can purchase limited amounts of extra coverage without having to answer questions about your health. If you want to significantly increase your coverage, you may have to answer health questions in order to qualify.

If your employer doesn’t offer a group life insurance benefit, you still might be able to get coverage through work. Some companies give their employees the option to buy life insurance on a voluntary, employee-paid basis. While you pay the full cost of the benefits under a voluntary arrangement, there are several advantages to buying insurance this way. Voluntary plans help workers get coverage more easily than if they were to purchase an individual policy on their own outside of the work-place. Plus, the premium can be automatically deducted from your paycheck, and can be less expensive because of efficiencies in application and billing procedures.

3. Direct Purchasing

You can purchase coverage online, over the phone or by mail. The better services provide qualified insurance professionals to guide you through the process, and offer competitive quotes from multiple life insurance companies for term life insurance. Based on your specific health situation, finding the right company is important in getting the best price available.