How To Buy Life Insurance

    Published: 06-16-2009
    Views: 10,459
    Wells Fargo financial expert Stephanie Chisolm explains how to buy life insurance to get the best rate available.

    Stephanie Chisolm: Hi! I am Stephanie Chisolm, a Wells Fargo team member. Today we're talking about how to purchase a life insurance policy that's right for you.

    Finding the right life insurance is an important step in securing your family's financial future. But you'll need to think about the company, the plan, and the benefits and features that are right for you and your family.

    No amount of money can make up for the loss of a loved one. However, having a properly designed life insurance policy at the time of death can allow your family to focus on emotional healing without having to worry about financial issues.

    Start by talking with the agent or company where you purchased your homeowners or auto insurance policies. Working with a single adviser for all of your financial needs can make your financial life simpler.

    Get quotes from several agents or companies and make sure you are only considering highly rated insurance providers. Most insurance companies have financial strength ratings from independent organization, such as A.

    M. Best Company, Standard & Poor's and Moody's Investor Services.

    Check with your employer too. If you work for a large company you may already have a life insurance policy with the option to buy additional life insurance under your group policy.

    Depending on coverage levels you still may want to consider purchasing additional life insurance. Now it's time to choose the plan. You can choose from a variety of flexible plans based on your specific life insurance coverage needs. Term Life Insurance is the simplest and typically the least expensive type of policy to purchase, and it can provide up to $5 million or more of coverage.

    However, it pays only if death occurs during the term of the policy. Permanent or whole life insurance policies provide coverage until the death of the insured no matter their age assuming the policy is kept current.

    Permanent Life Insurance policies also may have a cash value and many other benefits such as providing a source of personal loans. Remember to choose the company, the plan and the benefit and features that are right for you and your family.