When shopping for life insurance, you have several choices on how you get quotes and actually purchase a policy. However, should you buy from an agent or buy direct? Here are some things to consider.

 

Buying direct. You've seen the ads on television, in the Sunday newspaper circulars and all over the Internet. Sign up for a certain amount of life insurance coverage, at a certain rate, just by picking up the phone or filling out an online application.

Buying direct has it's advantages, especially if you know exactly what kind of life insurance is best for your situation and you want to minimize the time you spend talking with someone.

Buying through an agent. Buying through an agent is the traditional way of buying life insurance. There are two types of agents: independent and captive. Captive agents work for a single insurance company. Independent agents represent several different insurance carriers and have the luxury of shopping around for the best value.

The advantage of buying through an agent is that they can provide valuable advice on the types of coverages that might be best for you. They also tend to work in your best interests as far as customer service goes, because they want to have an ongoing relationship with you. And because they get to know you, they often can recommend other financial products that can help your financial future such as funding retirement or saving for college tuition.

One way to find an agent is through friends and family recommendations. Another way is to get quotes from three or four agents and evaluate their service. Ask them questions about their licensing, if they have any professional designations and what companies they represent.

And, whether you're shopping direct or through an agent, you should always get at least three different comparison quotes. Rates can vary quite a bit between companies and comparison shopping is the best way to be sure you're getting the best value.