There’s a right way and a wrong way to purchase life insurance. If you want to get good value for your dollar, it’s important to do research, compare quotes from several providers, figure out how much coverage you need, know what you should buy, and then speak with a few agents to get more details. Making an effort to be thorough will pay dividends, so take the time to do your homework.

Before you start shopping for policies, it’s important to know that you might find yourself in the position of wanting to cash in your policy someday. Keep this fact in mind as you research companies and the various types of coverage. If you like the idea of being able to sell your life policy for cash, limit your options to carriers who allow you sell. Many people enjoy the flexibility and financial security of a contract that comes with a built-in liquidity option. If times ever get tough or you need money for college tuition or a down payment on a house, you’ll be able to get it.

Research Companies and Quotes

The internet offers a wealth of information about businesses of all kinds, coverage types, costs, benefits, and special conditions. Spend a few hours filling in your knowledge gaps on the subject and find out who the top-rated carriers are. You might decide to choose a seller who specializes in a particular area. Make note of firms that have not only high ratings from experts but also get excellent customer reviews.

Know About Medical Exams

Don’t assume you’ll need to visit a doctor’s office and get a full physical exam before purchasing coverage. In most cases, even when an exam is necessary, the insurers will send you to a specified clinic for a routine checkup. In other cases, you’ll have the option of an in-home visit from a nurse or other medical professional who will take your vital signs and do a basic exam. However, if you buy a term policy or a no exam simplified one, you won’t need to have any kind of exam at all. If you are in good health, it’s to your advantage to have a thorough medical examination before purchasing coverage. Most companies offer much lower premiums for people who are young, in excellent health, or both. If you view insurance as a long-term investment, it’s obvious how much money a physical checkup can save you.

Calculate Your Financial Needs

You can ballpark your needs by multiplying your annual income by three and subtracting whatever money you’ve already set aside as savings. This number will help you decide on the amount of life insurance you should buy to replace your income and give your loved one’s time to adjust to the financial changes. There are many ways to go about this chore. Consider checking with some of the larger carriers’ websites. Some offer calculators that will help you arrive at an accurate number based on your answers to a series of questions. Try to use one of the online calculators and do some of your own math to come up with a range that feels right. After that, you’ll be better able to estimate what your premium amounts will be.

Opt for the Right Kind of Policy

If you’re simply looking for low-cost options that last for a fixed number of years, provide a death benefit and nothing else, term policies might be for you. You can purchase term insurance online from hundreds of carriers, so be sure to choose carefully. For whole life policies, you’ll be aiming to build up a cash value in a policy that can’t be cancelled and never expires until you pass away. It’s possible to buy both kinds of insurance online.

Contact Agents

Once you narrow your choices down to one or two companies, try and speak directly with agents who can answer your specific questions. This exercise does more than provide you with the latest details about premiums, health exams, and contract provisions. It offers you the chance to see what kind of customer service you can expect from the companies you’ve chosen. Expect everyone to ask your age, sex, smoking status, and whether you have been diagnosed with any serious diseases. Even if you’ve filled out countless questionnaires at the company website, agents will still ask, so be ready to go through the drill. They’ll also typically ask your line of work, whether you’re married, and what you do for recreation. It’s important for underwriters to know if you live a risky lifestyle or do dangerous work.