How to Buy Life Insurance

Because whole life insurance plans tend to be more complex than standard life insurance policies, purchasing them can be tricky for first-time shoppers. On this page, we'll give you pointers on how and where to buy whole life insurance.

Check with your employer first. An employer-subsidized whole life insurance plan will almost always be cheaper than an individual plan. Check with your employer or human resources department to determine if your company offers coverage. The disadvantage of the employer route is that most employers only offer term life policies, so if you're interested in whole life insurance coverage, you may have to purchase independently.
Make sure that whole life is for you. Research the differences between term life and whole life insurance plans. Whole life is much more expensive than term life at first, which is something you should consider if money is tight. If you don't understand the differences between the two policies thoroughly, talk to a financial planner or an agent.
Work out a budget for your life insurance policy. You'll need to know how much you can afford to spend on your whole life insurance plan each month before you begin to shop for coverage. Your budget will affect how much whole life insurance coverage you can afford as well as what kind of features you can include with your policy.
Decide on the amount of coverage you need. Using your budget as a guide, figure out how much whole life insurance coverage you need. Most people buy a policy worth five to seven times their annual income, but individual needs will vary. Consult with a financial planner or a life insurance agent for further guidance.
Shop for quotes on a whole life insurance plan. You will find the best premiums on whole life insurance policies if you compare quotes from several life insurers. You can either do this by visiting all of the sites of major life insurers or you can use our site and get up to five whole life quotes at once.
Research the policies and insurers. For each whole life insurance plan you're offered, find out how much the premiums are and how frequently and how long you must pay them. For example, your whole life insurance policy might require you to pay your premiums annually for the first 20 years of coverage. Similarly, research the insurer that offers the plan to assess their financial stability, customer satisfaction, and customer support system.
Buy through an agent, broker, or online. If your whole life plan is fairly straightforward and you have no questions, you can purchase your coverage online. On the other hand, if you need further assistance and would like to explore other coverage options, talk to a life insurance agent or broker.