Life Insurance provides financial protection for your loved ones after you die. It isn't sold on store shelves, but you have several options for buying a policy that meets your needs.
Single-Company Agent
A single-company agent sells policies from only one insurer and will meet with you to discuss your needs and present options from that company. Typically the agent is paid by commission, which is built into the premium's cost. With this option, you always talk to an agent, though you should compare offerings to be sure you get the best price and coverage.
Broker
A broker represents multiple insurance companies and will search available products to find a policy that fits your situation. This option increases your ability to choose an affordable policy and broader coverage options. For more detail on individual products, consider reviewing Individual Life Insurance.
Fee-Only Advisor
A fee-only advisor may sell policies from one or several companies but does not earn a sales commission, which can reduce sales pressure. These advisors are less common, so you may need to search specifically for “no load” or fee-only life coverage if you want this approach.
Employer
Many employers offer group life coverage as an employee benefit; these are usually term policies with modest death benefits and employer-subsidized premiums. If you leave your job, you may have the option to convert the group term policy to an individual permanent policy with the issuing company.
Organizations
Your labor union, trade group, alumni association or other membership organizations may offer group term policies with low death benefits and affordable premiums. These plans can be a good option if you are older or have health concerns that make individual coverage more expensive.
Financial Institutions
Banks and credit unions sometimes offer small, no-exam policies with low death benefits that let you name any beneficiary. Some lenders also include or offer insurance that repays an outstanding loan, so compare that coverage and cost to your overall assets before accepting it. If you're exploring product variations, you may also want information on Indexed Universal Life Insurance (IUL) as one permanent option.
Life coverage is an important financial decision. Research your options, compare costs and features, and consult a licensed professional when choosing where to buy a policy.
Frequently Asked Questions
Do I need a medical exam to buy life insurance?
Some policies require a medical exam, while many group or small policies do not; requirements depend on the insurer and the policy type.
Can I keep my employer-sponsored policy if I change jobs?
Often you can convert a group term policy to an individual policy when you leave, but conversion rules and costs vary by contract.
What is the difference between a broker and a single-company agent?
A broker represents multiple insurers and can offer choices across companies; a single-company agent sells only that company's products.
Are fee-only advisors more expensive than commission-paid agents?
Fee-only advisors charge a fee for their service instead of commission, which may reduce sales pressure, but total costs depend on the advisor and the policy you buy.