YOU ASK:

Should I use an agent in order to buy a term life insurance policy?

WE ANSWER:

Buying a term life insurance policy can be easily done without an agent. Compared to permanent life insurance, term life policies are much simpler and easy-to-manage to the point that they are now sold virtually everywhere.

You can now buy term life insurance over the phone or online, just like any other commodity. However, bear in mind that what you are purchasing is not a pair of shoes, but a serious product that will require your financial commitment.

No-Agent Term Life Policy Deals

Here is a list of places you can look for term life insurance (although in most cases you don't need to deliberately look for it, you see commercials, adverts and get phone calls inviting you to buy insurance every day):

The Internet provides wide possibilities of finding the best term life insurance quote. You can use the search engines to shop around, compare quotes by different companies and get informed about the basic features of term life insurance.
Telemarketing and direct mail solicitations. You must have experienced this before: getting brochures and direct phone calls from companies trying to sell you their product. In most cases, this is potential scam so do not trust these sources unless you have done some research and found more information about them.
Different creditors such as banks and mortgage companies will try to sell you credit life insurance. However, you should stay away from such offers as they are expensive. Furthermore, the creditor, and not your family gets the benefits in the event of your death.
Airports sport different slot machines selling 'fear insurance' that only covers death by accident.

Buying Term Life Insurance through an Agent

If nevertheless you want to play it safe and decide to rely on an agent to buy a term life insurance policy, you should pick one that is competent, experienced and well qualified. Typically, a good agent will hold one of the following qualifications: Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC) or Certified Financial Planner. (CFP).

There is one caveat: Try not to fall in the trap of being talked into buying permanent life insurance, if you don't need it. It is common practice for life insurance agents to recommend that, since they get considerably higher commissions selling cash-value policies.

In order not to become the victim of such deceptive practices, you should choose your agent with great care. Also, beware of agents trying to sell you an expensive cash-value policy just for investment: there are much better and safer investment possibilities.

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