When it pays to consult an insurance pro

By Ginger Applegarth

Consumers are doing more work themselves when it comes to buying insurance. Not only can you compare prices and policies online, but you can track a company's financial worthiness and check its ratings on Web sites like Standard & Poor's or A.M. Best. Here's some guidance on when to get help and when to go it alone.

Several options for buying

Before you inundate yourself with life insurance companies' performance surveys, annual reports and marketing brochures, first decide how you're going to buy insurance. There are several options:

• Buy it yourself directly from the company.

• Use a fee-only financial planner to advise you on what to buy.

• Use a commission-based financial planner who can sell you the insurance.

• Buy insurance through a life insurance agent.

To make an informed decision, you need to understand how these purchasing methods differ.

Buying insurance yourself

Although it can be complicated and time-consuming, you may want to buy on your own. There are several scenarios where that makes sense. You're a good candidate if:

• You're reasonably knowledgeable about term and permanent insurance, and you have a good idea which one is right for you, given the time frame of your needs.

• You've done a capital-needs analysis to determine how much you'd need (including needs for each spouse and any dependents, such as children or parents). Try the MSN Money Needs Estimator.

• Your taxable estate won't exceed about $1 million (including the life insurance death benefits).

• You're just buying term insurance, where there is no cash-value buildup.

If the above doesn't apply to you, you should still do some research, which will make you a much better consumer and increase the chances that you'll get the right policy for your needs. Start by comparing rates. You can get online quotes here on MSN Money.

One warning for the do-it-yourselfer: If your insurance policies are an integral part of an attorney-designed estate plan, you may need some professional help.

Such plans typically include variable or second-to-die insurance policies and/or are intended to reduce your tax bite. That gets a bit complicated, and if you choose the wrong policy, you've just wasted your money.

Getting professional help

Even if you do this legwork on your own, you may decide that you need an insurance expert to help you sort through all of the information you found. You may be spending thousands of dollars in premiums over time, and you may be counting on hundreds of thousands of dollars in death benefits.

Choose just one expert to help you. Avoid having several agents or planners competing with each other, pressuring you to buy from them.

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