Buying Life Insurance: Where to Start?

Summary: Buying life insurance is a crucial part of financial planning, as it ensures your loved ones' financial stability after your death. To navigate the process confidently, start by determining how much coverage you need, research insurers, understand policy types, compare quotes, and work with a trusted advisor to find the best plan for your unique situation.

In this article:

Buying life insurance is often overlooked in the financial planning process. Unlike investing, saving or traveling during retirement, buying life insurance focuses on protecting your loved ones after you die.

It can be overwhelming to think about, but it’s important to have a plan. Life insurance is an important step in securing your family’s future and financial stability. But for first-time buyers, the process can seem daunting.

5 tips for buying life insurance

You may be in the early stages of life insurance research. You may just want to understand how to get started. Either way, here are five practical tips to help you navigate buying life insurance with confidence.

1Start by asking how much life insurance you need

Review your finances and your plans for the future. Decide who will need to be cared for in the event of your death. Determine how long you will provide for your children–will the proceeds last through high school? College? If you don’t have children, do you need to pay off a house? How long will your spouse need extra income?

Thinking about these difficult questions now makes it easier on your loved ones in the future. If you need help deciding on an amount, try our life insurance calculator.

2Research life insurance companies

Not all life insurance companies are the same, so it’s worth researching options before committing. Look for companies with a strong financial rating, good customer service reviews, and a reputation for paying claims efficiently.

Financial strength is crucial because it reflects a company’s ability to meet its obligations over the long term. Independent rating agencies provide ratings that can help you evaluate different insurers. Consider also reading customer reviews to get a sense of other people’s experiences with claims, billing, and support.

3Decide which type of life insurance policy fits you

After you determine the amount of life insurance you want, take a look at the types of life insurance policies. Term life insurance lasts for a specific period of time, known as the term, and can be cost-effective.

After you determine the amount of life insurance you want, take a look at the types of life insurance policies. Term life insurance lasts for a specific period of time, known as the term, and can be cost-effective.

Permanent life insurance, also known as whole, lasts for your lifetime or the life of the policy. Some can even build cash value that you can use while you’re living. Whole life insurance can be a valuable asset if you’re looking for a long-term investment with the added benefit of life insurance. Consider what works best for your budget and your long-term goals.

4Compare multiple life insurance quotes

Once you have a clearer idea of the type of policy and amount of coverage you need, get quotes from multiple providers. Comparing life insurance quotes allows you to find the best rate for similar coverage, which can save you money over the years.

Many online platforms and brokers offer tools for comparing quotes, making it easy to see how different insurers stack up. Just remember to compare apples to apples—look at policies of the same type.

For example, compare whole life quotes with other whole life insurance policies with the same features. Compare Term life policies with term life policies of similar terms. Compare the same coverage amounts, and features.

Taking the time to shop around for a life insurance policy can make a big difference in the affordability of your policy.

5Interview an agent 

Speaking with an agent is an important step in establishing a relationship built on trust and confidence. If something were to happen to you, it’s your agent’s job to work with your family. An agent meeting is a good time to ask questions and discuss any concerns you have, so make sure you come prepared.

Agents can guide you through the fine print, explain policy options, and even suggest strategies to get the most out of your coverage. When interviewing an agent, ask about their experience, areas of expertise, and if they work with multiple insurance providers. A good agent should be willing to provide honest, unbiased information and help tailor a policy that meets your specific needs.

Call us at 800-377-9000 and our agents can help provide guidance and recommendations.