Life Quotes, Inc. Provides Tips On How to Buy Life Insurance

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Jan 24, 2011, 10:44 ET

DARIEN, Ill., Jan. 24, 2011 /PRNewswire/ -- Buying life insurance may seem like a daunting task, but it doesn't have to be. Today, there are a number of insurance policies customized to fit your needs without hurting your pocketbook.

Life insurance can be used to pay off a mortgage, plan for retirement, pay for your child's tuition and prevent tax penalties when transferring an estate to your loved ones.

While some experts argue that life insurance is only a benefit to affluent Americans, LIMRA statistics say otherwise: In 2010, 73 percent of permanent life insurance policies were purchased by middle-market Americans (people who make less income than $100,000 annually). Only 27 percent of permanent insurance policies are owned by the affluent (folks who make more than $100,000 annually). Life insurance can be a saving grace for families, especially if the primary breadwinner dies.

Life Quotes, Inc. suggests taking these personal financial questions into account before purchasing a life insurance policy:

Who relies on you financially?
How much is enough?
Should you purchase a term policy or a whole life policy? Term life insurance provides coverage for a set number of years (10, 15, 25 or 30 years) and when the term is up, you have to renew the policy for another term. Whole life insurance provides coverage for your entire life and the cost of the benefit increases as the policyholder ages.
Can you afford it?
Have you researched the company or broker you would like to work with?
Has your agent created a needs analysis tailored to your lifestyle?

For more on the insurance buying process, see "How To Buy Life Insurance" http://www.lifequotes.com/articles/how-to-buy-life-insurance-3/.

In addition, you might want to write a list of all your financial needs to determine which policy is best. Some of your immediate expenses might include:

Funeral expenses
Medical and hospital expenses
State death taxes and federal estate taxes
Debt liquidation such as credit cards, student loans and car payments
Alimony, mortgage or rent

To determine the amount of coverage you should purchase, see "How Much Insurance Do You Need?" http://www.lifequotes.com/articles/how-much-life-insurance-do-you-need-2/.

About Life Quotes, Inc.

Originally founded in 1984 as Quotesmith Corporation, Life Quotes, Inc. owns and operates a comprehensive consumer information service and companion insurance brokerage service that caters to the needs of self-directed insurance shoppers. Visitors to the Company's Web site www.lifequotes.com are able to obtain free, instant car insurance quotes, instant life insurance quotes, home, business and health insurance quotes from leading insurers and have the freedom to buy online or by phone from any company shown. Life Quotes, Inc. generates revenues from receipt of industry-standard commissions, including back-end bonus commissions and volume-based contingent bonus commissions that are paid by participating insurance companies. We also generate revenues from the sale of Web site traffic and insurance leads to various third parties.

SOURCE Life Quotes, Inc.