You can obtain life insurance policies through agents or brokers, by mail, via the Internet, or through group plans offered by your employer or an association. No matter how you buy your life insurance, you should only buy from a licensed company that offers policies approved in the state you live in.
Insurance shopping tips
First, set the goals you want for life insurance. Then shop around for life insurance. The cost of life insurance varies from company to company—as do their services, standards, and policies.
Research the policy carefully to make sure it meets your needs. Once you decide to buy life insurance, don’t delay! Make the purchase. Your beneficiaries will not benefit unless you buy a policy. Also, if you wait, you could develop a health problem, which could cause the rates to go up, or the company could reject your application.
The company must provide you with a buyer’s guide and a policy summary before they give you the policy. If you do not receive these two items, ask for them.
Deciding how much insurance to buy
You should decide how much life insurance you need. You need to look carefully at your individual circumstances. The real value of life insurance is to protect your loved ones after your death. Before you buy, ask yourself:
• What costs and hardships will my family have to deal with after I am gone?
• How will the loss of my salary affect my family?
These questions require careful thought and perhaps a candid talk with your beneficiaries.