7 June 2013 0 Comments

Term Life Insurance… It Should Be Easy

easy solutionsHaving spent my last 5 entries on the rather complex subject of Indexed Universal Life (IUL), it’s time to get back to some basics—Term Insurance.

If you are a family with young children, term insurance is probably what you should buy.  I say “probably” only because most people who fall into this category work on a pretty tight budget.  So if that’s you, term gives you the maximum protection for the lowest current premium.  That’s what you need.

Term insurance should be easy.  Read the first few entries of my blog that started in February, 2012 and you should have enough information to make an intelligent decision.  But, wait; how do you go about buying a term policy?  Who do you call?  Will they get you the best deal?  Will they try to sell you a different type of policy.

If you don’t have a trusted agent with whom you’ve worked in the past, this can be a daunting challenge.   Even then, it can be problematic.  Your car and home insurance agent might have little experience with life insurance.  If they’re with one of the direct writers, such as State Farm, that is likely the only place they will look to for your life insurance.  Some agents may have obligations to use their primary company instead of shopping for the best rates.  If you hook up with a very successful life agent, your $50 monthly premium might not be enough for them to bother with.

So…when you know that term is what you want, I recommend using an independent, direct marketing organization.  Such an organization will deal with you over the internet and/or the phone.  They should represent a number of insurance companies who have competitive term rates and should not have their objectivity jeopardized as the result of being owned by any of the companies whose policies they sell.  Beware of any direct marketer willing to quote you a price before they obtain a significant amount of data that will affect your premium, including your medical information and family history.

There are a number of direct marketing organizations and any one of them will be willing to give you information and premium estimates by phone and over the internet no matter how small the policy may be.  The marketer with whom I have a personal relationship that I know meets the above standards is SelectQuote.   Give them a try and I’d love to get your feedback.

Coming up…the huge life insurance protection for children and spouses that most people don’t know they have.

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