How to Choose Life Insurance Companies or Agents

Choose life insurance companies based on your specific needs. Ultimately, you are the one who will pay for the policy and benefit from the policy. You should consider what you can afford to pay and how much you would like to benefit before you begin shopping around.

Determine your Budget

Budgeting is the first important step in shopping for any insurance or product. Start by evaluating your salary. Divide your monthly salary in two; half of your salary should go to fixed costs, and half should go to saving and discretionary costs. Fixed costs include:

  • Rent
  • Mortgage
  • Insurance
  • Loan debt
  • Other necessary living expenses (gas, light, food)

Determine your Needs

You should consider three basic factors when deciding how much life insurance you need: your debts, your income and your family's continued needs. Ensure your debts will be paid, your income will be replaced, and the needs of your dependants will be met. Then, look for an insurance company that can do all of this within your budget. You may also consider the intangibles, like how friendly the service is or how responsive the agent is. In the end, though, you are mostly looking for the right coverage at the right price.