Do you get your life insurance through your bank?

Question

does yours offer it?

Is it any good?

Should I just get it through my agent?

And I'm asking because I'm looking to get some for my mother who is 61.

Is it too late?

Will it be worth it at all?

Answer 1

If you want to get it, I would search online for term life insurance and pick the best rate.  You don't need an agent for life insurance unless you enjoy sending his kids to college.

Why does your 61 yo mom need life insurance?  Who is dependant on her income?  Life insurance is designed to support your family if you die suddenly.

At her age the premiums will be high.  If you are just trying to insure against funeral costs then you would probably be better off just putting a small amount in a savings account every month.

Insurance Made Easy.biz: If you buy insurance directly from the insurance company it is usually cheaper than going through a middle man like you.  Of course you will beg to differ.  I'm not suggesting using an online broker, I'm suggesting researching the rates offered directly by the insurance companies online.  And there isn't much to explain.  Term Life is the best choice 99% of the time, but of course brokers will try to sell Whole Life or Variable Life because that gives them a big commission.  I am not a broker and have no vested interest in the insurance business.  I am a fee-only investment advisor (no comissions or kick backs on the back end) so I make the recommendation that is best for my client every time.  Insurance brokers have a built in conflict of interest and you should take their advice with a grain of salt.

Answer 2

Age 61 is not too late.  I wrote policies on several people in their 60's this past month.  It is more expensive at age 61 than at age 31.  But that doesn't mean it should not be investigated.

I have the ability to sell a bank life insurance product and it is pretty good.  But there is also a lot of bad ones.  Do you know the difference?  If not, Insurance-Made-Easy gave good advice here.

He is right about the pricing.  It will be the same if you buy "direct", through the bank or through a broker.  

Why not go through a broker who knows which companies are easier to deal with?  

A broker can also offer advice on where to apply if there is a health, occupation or lifestyle issue.  Some companies automatically decline certain conditions where others would accept.  The problem is, once you get a decline at one company other insurers are less likely to accept.

A good broker will offer way more guidance and support than any bank or "direct" online co ever will.  (I am sure there are bad ones - just like every other profession)

So it's win win if you buy from a broker!  You get good advice and support from someone who knows the ins and outs of the business.  And the broker gets to put his/her kids through

school.  Is that so bad?!  The commission goes somewhere - why not to your local insurance broker who has a family just like you?

Sorry - I'll get off my high horse now.

Answer 3

The bank is just acting as a broker for the insurance company. There is nothing wrong purchasing your insurance from them.  It's not too late depending on her health. It can be expensive but it is worth checking out.

With all the different life carriers and plans available most people really should use a life insurance broker. A Broker represents multiple carriers and can help you sort through all the different insurance companies and plan options in your state. Brokers also don't have corporate goals to meet which could influence them in which plan they recommend.

You can try doing your own research on the internet, but if you give a good broker 5 minutes they will be able to make suggestions on which carrier and plan may fit you best.

I suggest using yellowpages.com to search for life insurance brokers in your area.  

You can call your auto and home agent they specialize in property and causality insurance and usually have a good knowledge of life insurance.

But you may have better luck with a broker that specializes in life insurance they will have a wider selection of companies to offer.

In response to Slitlkr

The price for life insurance is the same weather you buy on-line or from an agent. In fact when you buy on-line you are buying from an agent because only licensed agents can sell insurance.

And even at age 61 saving $100 per month vs putting that money into a life policy is not even close. The life insurance is a much better plan unless of course you can tell me how long someone will live.

Slitlkr

Please give me some evidence of the life insurance companies you can buy from direclty. If you have done this what is the company? I would love to know and compare the rates.

Answer 4

I won't get into the whole agent versus direct versus website debate except to say that they all have marketing costs built into them whether they be commissions, tv commercials, direct mail, etc.  

Specifically to the bank question:   Your bank is probably working with a life insurance company since banks are not allowed to write life insurance.  That means that they are essentially acting as the agent.  Now most banks sell some sort of simplified issue product since it is easier for a bank manager who doesn't know much about life insurance to sell.  Usually with a life insurance policy from a bank you are going to have a more convenient and streamlined experience, but will probably not get the best advice or the best price.