What is an individual life insurance policy?

Individual life insurance policies explained

An individual life insurance policy is one that insures the life of one person (the insured), and generally does not include coverage on other people (i.e. family members). This entails finding the policy, selecting the benefits that work best, usually working with an insurance agent or broker directly, and researching and deciding from many life insurance quotes.

An individual can often purchase a life insurance policy from the same insurance agent or broker who managed the purchase of other insurance policies, such as home or automobile. However bundled discounts are rarely offered for life insurance premiums.

When working with an insurance agent or broker, there is often a fee involved. This fee is called a load, and is built into the premium rate. It is designed to compensate the insurance professional for the time spent working with the insured, advising the insured about the proper type of insurance and coverage, and for customer service offered throughout the life of the policy.

Consumers can also purchase insurance from a fee-only financial advisor. This is considered a no-load insurance, meaning that the advisor receives payment directly from the consumer, not via an addition to the premium.

Consumers may also purchase life insurance directly from an insurance company. In New York, Massachusetts, and Connecticut, individuals can purchase individual life insurance from a saving bank.