Where to buy life insurance

There are many different ways to buy life insurance. Learn something about each one and see why using a life insurance broker is usually the best option.

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where to buy life insurance

How to buy life insurance is not a difficult task, especially nowadays. Although we are restrained from going outside, there are ways to scout for the best life insurance policies. Learn more about each option and why getting a broker is the best option for you. 

Once you have decided that you need to buy life insurance, then one of the initial steps is to look for the right place to buy one. There are a myriad of ways on how to get life insurance: you may get your life insurance rates online, then contact an online broker, an affiliated agent, directly from an insurance provider, financial adviser, or your employer or credit union. 

No matter where you want to buy a policy, your state regulates all premiums, and the price is the same. However, quotes may differ according to different factors, such as age, health status, lifestyle, and more. Once you went through the underwriting process and passed, your premium is the same no matter where you get your application form.

Moreover, the overall experience may differ on where to buy life insurance.  For instance, brokers and independent agents may offer impartial advice than others, while some can provide more opportunities for you to acquire connection and convenience. Continue with the rest of the article to find out which avenue is right for you.

Important Takeaways:

  • The best place to buy life insurance depends on your priorities.
  • Brokers work independently and offer various policies from different insurers, while agents work for a specific insurance provider.
  • Purchasing directly from the life insurance companies may limit your options and chances to compare quotes.
  • Be cautious of professionals offering expensive policies more than what you need.

Buying from an experienced life insurance broker

The beauty of going to an independent broker is that they are not confined to just one insurer. Therefore, they have the proper knowledge to provide advice on the best life insurance companies offering affordable life insurance according to your personal needs.

They will hear your story and background to know your health condition and your financial standing. Working with them gives you a fair opportunity to get life insurance quotes online from multiple insurers and select the life insurance policy that suits you best.

Advantages and disadvantages of buying through a life insurance Broker

Each life insurance provider has its guidelines for a health condition, family history, and applicant’s financial condition. The best and experienced broker may help you to identify a specific insurer to match your profile.

However, dealing with an independent broker may add time to the overall application process but well worth it if you can get life insurance and save some money.

Pros:

  • An expert broker is well versed with each insurer, so they can recommend one that suits your needs and profile.
  • Also, a broker can shop around to look for other options if you failed with the underwriting process or the premium offered is higher than the quotation. 
  • A broker can follow up on the status of your application on your behalf, especially during the underwriting process, which is the most critical part of the application. They can keep you updated on the progress as well as delays.

Cons:

  • Some brokers are more knowledgeable than others, so you must find the right one to get the support you need. 
  • If you have many risk factors, then an insurance broker may take a little longer to compare quotes from diverse insurance providers.
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Buying life insurance from an affiliated or captive agent

Affiliated agents or captive agents are those who promote and sell products limited to insurance providers where they are working. These agents are working alone inside a small office selling different policies from selected insurance companies.

Advantages and Disadvantages of an Affiliated Agent

These agents sell policies from a limited number of insurers, so they know the policy very well. They can recommend policies according to the insurer they work on but may offer you higher premiums. It is because they benefit from the commission from policies sold.

Pros:

  • You may be more comfortable sharing personal information from these insurance agents, especially if you know them.
  • These agents are well versed in each company’s guidelines and timelines, making the process shorter than other options.

Cons:

  • These agents may only offer policies from the companies where they are affiliated. You might miss out on other great opportunities or better deals from different insurers.
  • Affiliated agents are being paid base on commission. It means that they offer expensive policies to earn more commission. Therefore, you might end up buying a costly policy than what you need.

Independent life insurance brokers vs agents

A survey from LIMRA shows that around 89% of life insurance policies are sold from either brokers or agents. Most of the time, many are confused between brokers and agents, but it’s vital to distinguish them. For instance, we at Coach B are independent brokers working with diverse insurance providers.

We are selling policies from multiple different insurers, so we only work on behalf of our customers. On the other hand, affiliated agents are hired by one or more insurers to promote and sell their insurance products. They are working for the benefit of the insurance companies where they are affiliated.

Compare and buy life insurance

Buying life insurance directly from the insurance company

Mainly, insurance providers sell their life insurance policies through brokers and agents, but some may offer a direct sale. It means that you can directly contact the insurer to apply and buy a plan from them. Though it might seem like a wise move, using this option can leave you with minimal choices.

Advantages and Disadvantages of buying life insurance direct from the company

Life insurance providers may give you the most accurate information and straightforward answers to your inquiries about each of their policies. It is better to choose a well-known insurance company. You may not acquire the best options from company representatives as they may offer the most expensive policy for their benefit.

Pros:

  • It is possible to acquire quick and accurate answers about their policy.
  • You may be familiar with the company’s name, so you feel confident about getting a policy from them.

Cons:

  • The policy you get directly from the company may not be the best option for your lifestyle, financial condition, and health status.
  • Company representative’s number one priority is the benefit of the company more than the client, so they can lead you to purchase a costlier policy that you do not need.
  • In case your application is declined or ends up with a higher premium than what was quoted, you need to start the process from the beginning with another insurance company. 

Buying life insurance from a fee-based financial adviser

There are licensed financial advisers that can help you get the right policy according to your needs. However, some of them might not be insurance experts.

Advisers are usually working with selected insurers to promote and sell their products. They may integrate a policy into your financial plans.

Advantages and Disadvantages of buying through a financial adviser

The good thing about getting a financial adviser’s service is that they can suggest options that fit your budget and current financial standing. However, they are not experts in identifying the most affordable policy according to your profile.

Pros:

  • They are aware of your financial goals and condition, so they provide sensible suggestions tailored to your financial plans.

Cons:

  • Financial advisers are not experts in life insurance, unlike brokers. Therefore, they may not suggest a policy that suits your health status and other lifestyle concerns. 
  • They are also selling policies on a commission base and can offer higher premiums for their benefit and not yours. 

Other avenues for buying life Insurance

Aside from what was written above, there is another way for you to acquire a life insurance policy. It is from a specific organization and company.

It is the same way of purchasing directly from an insurer. Unless your organization is affiliated with various insurers, which is very rare, similar advantages and disadvantages apply.

Employer-sponsored plans

Employers usually offer group life plans to their employees. If the employer subsidizes half or whole premium, then there is no harm to opt-in. However, if you are aware that you need reliable life insurance, it is better to get your policy.

Group policies are most of the time, have lower coverage amounts compared to personal policies. Above all, you are not allowed to take your policy with you once you leave the company.

Some organizations

An organization may be affiliated with an insurer. For instance, Walmart is selling life insurance now.  The company offers policies from two different insurers, so you may not get the most affordable options for you.

Credit Unions

If you are a credit union member, you may acquire a policy from them if they are offering one. However, you may only choose premiums from a single company. As a result, there is a danger of paying more for a policy than you would if you compare it to other insurers.

How much life insurance cost?

Where to buy life insurance from?

Suppose you want to be a wise shopper for an easy life insurance policy. In that case, getting the service of an online independent broker who is knowledgeable and experienced with multiple insurers that can help you buy life insurance online is the best option for you.

Brokers can provide the latest information to help you conduct a thorough search to get the most affordable premium according to your personal needs, lifestyle, and profile.

Moreover, in deciding on how to choose life insurance, it’s better to focus on a particular part of the whole experience. If you think that you need someone who knows the in and out of the process of purchasing a policy, then you need a broker.

In case you want someone who can manage your financial plan and which policy to fits in, then a financial adviser may be the right person for you. If your top priority is practicality, you may get in touch directly with an insurance provider or an affiliated agent, for that matter.

FAQs

How do I get a life insurance policy?

One can purchase a policy from any licensed salesperson or agent, but we highly recommend that you contact an independent broker and get direct life insurance quotes from them. Other options to find policies are directly from insurance providers, affiliated agents, or licensed financial advisers.

Where is the best place to buy life insurance?

If you want a consumer-friendly process to buy your first life insurance policy, we suggest that you communicate with an online independent broker and buy life insurance online now. The main reason is that they are not working on a commission base for particular insurers. Therefore, brokers can recommend the best policy tailor-made to your personal needs.

Can I purchase a life insurance policy through the bank?

There are times when banks may offer life insurance policies, but the choice is minimal. If you what to save more from buying affordable premiums, then opt for an organization that sells multiple policies from various insurers.

Meet the team

About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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