GETTING STARTED

GETTING STARTED

After you have thought about your financial needs and have become
familiar with the basic types of life insurance, you will need to
choose a company and agent.

How do I choose a company?
More than 2,000 companies in the United States sell life
insurance. While some consumers prefer to buy policies directly
from a company, most people buy life insurance through agents or
brokers. Much of the information provided here will be helpful
whichever way you decide to buy life insurance.

Before purchasing a policy, check the company's financial
condition. You can do this by asking the agent or requesting
information from your state's insurance department. A number of
insurance rating services rate the financial strength of
companies. These ratings can be found in large public or business
libraries, or can be obtained directly from the rating service.
There may be a fee forthat information.

Also check with the state insurance department to be sure the
company is licensed in your state.

How do I choose an agent?
Collect the names of several agents through recommendations from
friends, family and other sources. The following are some
questions you may want to ask a potential agent:

Is the agent licensed in your state?
All states require that agents be licensed to sell life
insurance. In addition, agents who sell variable products must be
regis-tered with the National Association of Securities Dealers
and have additional state licenses.

What company or companies does the agent represent?
Does the agent have any professional designations?Professional
designations include Chartered Life Underwriter (CLU) and Life
Underwriting Training Council Fellow (LUTCF). Agents who also are
financial planners may have designations, such as Chartered
Financial Consultant (ChFC), Certified Financial Planner (CFP) or
Member of The Registry of Financial Planning Practitioners.

Is he or she a member of a professional association?
The major association for agents is The National Association of
Life Underwriters (NALU). Through NALU's local associations,
agents can attend educational seminars and can stay on top of
trends in the business. Similar training and services are
provided to financial planners through the American Society of
CLU & ChFC, the Institute of Certified Financial Planners (ICFP),
and the International Association for Financial Planning (IAFP).

What can I expect an agent to do for me?
An agent should be willing and able to explain various policies
and other insurance-related matters. Let your agent know what you
expect from him or her. You should feel satisfied that the agent
is listening to you and looking for ways to get you the right
type and amount of insurance at an affordable price. If you are
not comfortable with the agent, or you aren't convinced he or she
is providing the service you want, find another agent.