Life Insurance Purchasing Process

Buying Life Insurance

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Your decision about which life insurance policy to purchase depends on your needs and financial situation. Follow this process when making your decision to buy:

Compare rates
Determine the right agent/broker
Research the insurance company

Cost of Life Insurance

If your top priority is price, you will want to begin by comparing prices from different life insurance companies. Premium amounts can vary depending on the company, so it pays to do the research. The best place to start is the Internet, where a variety of online quote systems are readily available, at no cost and with no obligation. There are a number of quote sites online that provide comparison quotes for highly rated companies, representing a myriad of insurance plans.

Finding the Right life insurance Agent/Broker

When you have an adequate amount of research in hand, you can start the process online or contact an agent or broker. An agent represents one company, while a broker works as an intermediary to compare rates from a number of companies. Evaluate each option and ask friends, co-workers and others for referrals. Visit our agent and broker pages for an overview of each, then compare to make the best choice.

Evaluate the life Insurance Company

Your most valuable tool in evaluating the reliability and financially security of a company is with a review system, available from a number of ratings companies. Research the companies to find out what type of rating they have. Visit the life insurance ratings page for more details. You can learn more about the companies you are considering at:

Additional Steps When Purchasing Life Insurance

Once you have followed this preliminary process, you can move ahead with your application. In some cases, you will need to have a medical exam to determine your overall health. Once the application is submitted and your exam is complete, the “underwriting” process begins – this research and evaluation process varies, but can take between 3 to 8 weeks, depending on how long it takes to gather the information required (medical records, employment verification, etc). During this time, the insurance company is evaluating details about your case and making determinations about your rate.