Buying Life Insurance: Agents, Brokers, Online and Avoiding Scams

Once you know roughly how much coverage you need and for how long, the next question is where to buy it. You can work with an agent, use a broker, apply directly with an insurer by mail or online, or enroll through a group. Each route can work well, but each also needs a few basic checks to make sure the seller and the policy are what they claim to be.

This guide explains the main buying channels, how to verify licenses, how to compare quotes fairly, what to do at signing, and the red flags that state regulators and the Federal Trade Commission (FTC) warn about.

This is general information, not insurance, financial or legal advice. If you have questions about a company, an agent or an offer, your state insurance department is the place to start, and a licensed professional can help with your specific situation.

The ways to buy

Washington's Office of the Insurance Commissioner, in its consumer guide to life insurance (revised March 2026), lists the main routes: agents or brokers, mail, the internet, and group plans through an employer or association.

• Agents: Washington's guide says agents represent one or more companies and are paid by commission to sell those companies' policies.
• Brokers: Washington's guide says brokers represent you, survey the market for the coverage you describe, and also receive a commission on the sales they arrange.
• Direct by mail or online: Washington's guide notes that all state insurance laws apply to internet sales, so check that the company is authorized in your state.
• Group plans: covered in our guide Group Life Insurance at Work vs. an Individual Policy.

Online is not automatically cheaper. The National Association of Insurance Commissioners (NAIC) says on its life insurance consumer page that you will likely pay the same premiums whether you use an agent or buy online, and that an agent can help you figure out how much you need, understand the policy terms and complete the application.

Verify licenses before you share information

Everyone selling insurance to you, and the company behind the policy, should be licensed in your state. The Texas Department of Insurance's life insurance guide (updated December 2025) explains why it matters: if you buy from an unlicensed company, your beneficiary might not get paid if the company fails, while licensed companies belong to a guaranty association that pays claims for failed companies.

How to check:

• Use your state insurance department's online lookup or call its consumer line to confirm the agent's and the company's licenses. Both the Texas and Washington regulators offer this by phone and online, and other states have similar tools.
• Use the company's exact name. The Texas Department of Insurance's fraud guide (updated June 2026) warns that unlicensed companies often use names similar to licensed ones.
• For variable life insurance, which involves investment options, the seller needs securities credentials too. The Texas guide says agents who sell variable life in Texas must have a federal securities license and a state insurance license, and FINRA's BrokerCheck lets you research professionals who sell securities.

Compare quotes on equal terms

The Texas guide suggests getting quotes from several companies and comparing "apples to apples": make sure the policies offer similar coverage, because a cheaper policy may have fewer features or a lower death benefit. It also cautions that illustrations showing how cash value might grow are usually projections, not promises.

Questions to ask about every quote:

• Is the premium guaranteed, and for how long?
• What part of the premium or policy value is not guaranteed?
• What is the highest premium I might have to pay to keep this coverage? The NAIC's Life Insurance Buyer's Guide (2026) recommends asking this.
• Which riders are included, and what does each cost?

At signing: protect yourself

A few habits from regulators' guides prevent most problems:

• Review the application before you sign. The NAIC's buyer's guide says the insurer will check your answers and could reduce or cancel coverage if it finds false statements.
• Never sign a form with blank spaces, even if you are told it is a formality, as Washington's guide warns.
• Make your check payable to the insurance company, not the agent, as the NAIC advises.
• Keep copies of everything. Washington's guide suggests insisting on a hard copy of anything an agent showed you on a laptop.
• Use the free-look period. The NAIC's 2026 buyer's guide says you can usually return a new policy for a full refund within a review period, usually 10 days after you receive it. The period varies by state; the Texas guide (updated December 2025) says Texas policies have a free-look period of at least 10 to 20 days, and Washington's guide says new policies issued there have 10 days.

Red flags and common scams

The Texas Department of Insurance's fraud guide (updated June 2026) says seniors are often targets of insurance fraud, particularly life and health insurance fraud, and urges caution with salespeople who:

• Contact you unsolicited.
• Use high-pressure tactics, such as a "last-chance deal" or appeals to emotion.
• Urge you to cash in an existing life insurance policy or annuity to buy something new. The same guide (updated June 2026) says changing to a new policy during the first three to five years can cause you to lose money.
• Claim to be from Medicare, Social Security or another government agency. The guide says the government doesn't sell insurance.

Washington's guide adds more warnings: be wary of offers that sound too good to be true, offers to swap a small policy for a much larger one without paying substantially more, life insurance presented as a "pension plan" or "retirement fund," and promises of "vanishing premiums." It also reminds you that you do not face any deadlines. The Texas life insurance guide says that in Texas, agents can't offer you a gift or a discount on an investment or loan to persuade you to buy.

The FTC's guide "How To Avoid a Scam" describes four general signs that apply here too: scammers pretend to be from an organization you know, say there is a problem or a prize, pressure you to act immediately, and tell you to pay in a specific way, such as with a gift card, a wire transfer or cryptocurrency. The FTC also advises not giving personal or financial information in response to a request you did not expect. The Texas fraud guide likewise advises not giving your Social Security number or personal information to anyone you didn't contact.

If something goes wrong

If you have a problem with an agent or company, the NAIC recommends trying to resolve it with the company first, then filing a complaint with your state department of insurance, which can investigate at no cost. Keep records of every call, email and document. If you suspect a scam, report it to your state insurance department and to the FTC through its ReportFraud website.

Key takeaways

• You can buy through agents, brokers, direct channels or groups; the NAIC says buying online is not necessarily cheaper.
• Confirm the license of both the seller and the company with your state insurance department before sharing personal information.
• Compare quotes for similar coverage, and ask what is guaranteed and what could change.
• Never sign blank forms, pay the insurer rather than the agent, and use your free-look period.
• Walk away from pressure, unsolicited "government" offers and requests to cash in existing coverage.

Sources

• Washington State Office of the Insurance Commissioner, A consumer's guide to life insurance (rev. March 2026)
• National Association of Insurance Commissioners, Life Insurance (consumer page)
• National Association of Insurance Commissioners, Life Insurance Buyer's Guide (2026)
• Texas Department of Insurance, Life insurance guide (updated December 12, 2025)
• Texas Department of Insurance, Insurance fraud guide (updated June 16, 2026)
• Federal Trade Commission, How To Avoid a Scam
• National Association of Insurance Commissioners, How to File a Complaint
• FINRA, Check Registration: Sellers and Investments