The 5 Worst Ways to Buy Life Insurance.

April 10, 2013 at 10:47 am Leave a comment

life-insurance-for-childrenNeed life insurance? You want something affordable, but you also want something that will meet your needs. Avoid the most common mistakes in buying life insurance.

Here are the5 worst ways to buy low cost life insurance.

 

1. Buy Life Insurance from a Captive Agent

What is a “captive agent?” It is an agent who works for one insurance company. That means the agent can only offer you a few different policies. Buying from a captive agent is like buying a “one size fits all” when, really, one size only fits a few!  There is no competition here so you can’t necessarily get the best policy and the best pricing.  You can only get what that one company has to offer.

2. Buy Life Insurance from an Internet Website

Using an online search engine can be a way to start thinking about your life insurance needs. You should talk with an agent first, as a quote engine can’t answer questions or give you any ideas.  Then you have to fill out an application, have it evaluated by the insurance company underwriter, who will then decide your rating, which determines the price you pay.

So what are Life Insurance Quote Engines? Online quote engines are a way for insurance lead companies get your information and sell it to agents who will then contact you. Your lead can be sold multiple times which means you may get many calls for life insurance.

If you fill out an online quote from an agent’s website, they are the only ones who will get your information.  Then, if they are an independent agent, you will get much better information and a range of choices when you talk with them.  It is our job to help you find the best company and the best price to suit your needs.

3. Buy Life Insurance from Your Auto Insurance Company

You might get an offer of a “deal” for life insurance from your automobile insurance carrier. Don’t be fooled. Life insurance is just a sideline for these companies. These agents may know auto insurance, but they don’t know all the ins and outs of life insurance.

Moreover, once again you will have only one company to choose from. Additionally if you are not perfectly healthy, they will most likely be more expensive than a company that only offers life insurance.  Go independent for choice, price, and the best possible company and policy to fill your life insurance goals.

4. Buy Life Insurance from an Affiliate Group

Sometimes these offers sound tempting. The policies often start out with low pricing which can be very attractive. What is the problem? The price for these policies increases as time goes on, sometimes every year or every five years. At some point, the policy might be too expensive.

Another problem is that these policies are often only available when you are a member of the group. What if you leave the group?  If your health has changed, you may have a harder time getting affordable life insurance.

5. Buy Life Insurance from your Job

Life insurance through work is often cheaper than on your own.  But what happens if/when the job ends?  Not all group life insurance policies allow you to keep the policy when you leave your job. Since pricing for life insurance goes up as you age, you may end up having to pay a lot more if you need to replace that insurance later.

The Bottom Line

What is the best way to buy low cost life insurance? Getting a level premium life insurance policy from an independent life insurance agent may be the most secure way to go. An independent agent works with many highly rated companies, so you can have choices.

In addition, the independent agent can help you work through which type of policy best meets your needs. Best of all, an independent agent works for you, not for the company, and their goal is to help you get the best affordable policy for you.

At ottawabroker.com we shop over 25 insurance companies and we will tell you not only who  as  the best price but the best product for your insurance needs.

Call us right now for a free quote or visit ottawabroker.com.
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