Finding the most affordable whole life insurance requires some research, some patience, and a little luck. You’re taking care of the research part by reading my blog. Congratulations, you can scratch that part off your list. I’m being sarcastic because every insurance agent thinks they give the best advice (there is no modesty in my profession).
The patience part comes from sitting down with an agent to go over options. There’s a temptation to buy directly from an insurance company without an agent’s help. This is obviously more convenient. However, as a general rule, the more convenient a life insurance transaction becomes, the more likely you are getting a bad deal. What’s more, there is no monetary disadvantage to buying insurance through an agent. The rate you pay buying direct is the same rate you pay through an agent. By ditching the agent you are simply making it more profitable for the insurance company. Let me just say this as strongly as possible: Never buy life insurance directly through an insurance company. If you leave here with one piece of advice, then leave with that.
The luck part comes from finding the right agent. An agent can look reputable, but at the same time sell the most expensive policies on the market. There are two things to look for when shopping for an agent: experience and the number of companies represented. Every insurance agent goes through a state exam in order to be licensed. However, this license exam covers the bare minimum amount of knowledge that an agent needs. Most of what an agent learns comes from on-the-job training. Experienced agents understand insurance contracts better, and more importantly, they understand the market better. Experienced agents are more likely to shy away from expensive companies, whereas new agents don’t know the difference between expensive and not expensive companies. As far as representing multiple companies, I think it’s obvious that agents can’t be objective if they are only offering one company.
I hope you enjoyed my life hacks for buying the most affordable whole life insurance. Feel free to leave a comment. If you have a life insurance question that isn’t covered in one of my blog posts, send me a message and I’ll get back to you.