You belong to more associations than you think – from your roadside assistance provider, to your professional association and, more surprisingly to some, your local bulk merchandiser. Association’s come in many forms, but they all have one thing in common; you are a member, and have access to many services that non-members do not. But should I buy life insurance from a big box store?
There is a certain convenience that comes with being part of a club – a one stop shop for what you know they are best for, having all of these services in the same location, and being able to assume that you are getting the best deal out there. Recently, key players in the bulk merchandise industry have started promoting term life insurance products. Unfortunately, not everything is as transparent as we would like, and you can’t assume you’re getting the best deal without shopping around first.
Buying life insurance is the not the same as shopping for toilet paper – while member-friendly pricing is typically advertised by most associations, discounted premiums are not always what they may seem. If we take a look at the premium being offered by one retailer for a 40 year old male, the price is $64.26/m for $500,000 of life insurance or a slightly lower $61.02/m if you have a higher membership level, with prices increasing every 5 years. When we compare these to what an independent agent or broker could provide, costs are closer to $33.83/m for a product whose prices only go up every 10 years.
The value of professional advice does not stop once the application process is finished. What life events would warrant a change to your insurance coverage? Who do you call to make those changes, and what will they need from you? These are all things an insurance specialist will be thinking of that, typically, your association will not.