5 BS-Free Tips For Buying Life Insurance

When purchasing life insurance, keep in mind that your insurance representative may be selling you on a product you may not need. For instance, did you know that insurance agents get paid more for selling whole life insurance policies than term life? Here are my tips for you:

1. If possible, use an independent broker. The reason I say this is because they will have access to multiple resources, and thus you will have more options when purchasing the best life insurance policy for you. They are not bound by one company’s limited products.

2. If your insurance agent recommends a product at your first meeting or on your first conversation, be very wary. If they don’t yet understand your situation, they should not be making suggestions yet! They may try to push a whole life insurance policy on you because they make more money selling whole life insurance than term life insurance. In all honesty, term life insurance is sufficient for most families.

3. Make sure to ask your insurance agent questions about the life insurance product you are purchasing. Understand whether the policy is renwable, cancelable, and if the premiums are guaranteed and if so, for how long? Make sure you understand what the clauses and exceptions are.

4. Understand that term life insurance does not have an investment component. Whole and universal life insurance are much more expensive than term life insurance, but can be used to build cash value.

5. Trust your instincts. If your insurance representative seems arrogant, pushy, or are not answering your questions in a straightforward manner, please find another insurance advisor. There are plenty out there more than willing to serve you!