ntil the late 1980s, when the life insurance industry was deregulated, there was only one way to buy insurance - through a life insurance agent.

You had to take the agent's word for whatever the policy illustrations promised and the agent had to take the life insurance company's word. Fortunately, times have changed. Now there are more kinds of insurance and more ways to buy it than ever before.

Consumers have become more savvy about the process of buying insurance and many have begun trying to do more of the work on their own. Although you still might have to get a physical examination from your doctor, you can usually handle most of the process on the Web and over the phone. Deregulation has also resulted in better financial disclosure from companies, so it's easier to determine a company's financial strength.

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

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

Although it can be complicated and time-consuming, you may want to buy on your own. You're a good candidate if:

Even if the above doesn't apply to you, you can do a lot of the legwork yourself, which will make you a much better consumer and increase the chances that you'll get the right policy for your needs.

Be aware that some of these companies generally don't include quotes on commission-free policies (they get a cut of the action).

Two well-regarded companies that sell directly to consumers are Ameritas and USAA. The Insurance Information Institute offers commission-free policies in its quotes to you but it charges $50 upfront.

A bit of a 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 have as one of their goals to reduce your tax bite. That gets a bit complicated and if you choose the wrong policy, you've just wasted your money.

Even if you do this legwork on your own, you may decide the information you got back is so complicated that you need an insurance expert to help you. 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. The decisions you make about life insurance are critical to your family's financial future and using a financial planner or an insurance agent may be your best bet.

Choose just one expert to help you. This means that you avoid having several agents or planners competing with each other and pressuring you to try to buy from them. A licensed insurance agent who works on commission is usually a solid option. If you consult a financial planner, understand the three ways in which he or she may be getting paid:

Knowing how a planner is paid will help you evaluate the advice you're being given and make sure it's not biased toward product sales. There is nothing wrong with using an adviser who earns commissions (if you get help from someone, you should expect to pay them). But you're entitled to know how you're paying them.

In addition to knowing how your adviser is paid, you should consider the person's professional credentials and years of experience. Look for some of the following credentials if you're using a planner: Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Certified Public Accountant (CPA), or a law degree (JD or LLM ). Insurance agents should be a CLU or a ChFC and licensed in the state where you live. You also need to look for someone with at least five years' experience. That sounds like a long apprenticeship but insurance is very complicated.

Once you've decided who will help you, pick the companies you want to consider. The company you choose is much more important than any individual policy. Never purchase what looks like a terrific policy from a mediocre company.

Policy illustrations can be prepared based on very unrealistic assumptions, so check the insurance company's financial ratings. This is a job that no individual can effectively do. Beware of any adviser who tells you that she knows more about the insurance company than the ratings services, that the ratings are unimportant, or that he or she can't obtain them. If the planner or agent doesn't do enough business to get copies of the reports from the services, then you shouldn't be dealing with that person.

Financial rating services such as A.M. Best, Duff & Phelps, Moody's, Standard & Poor's, and Weiss all issue reports on a company's financial worthiness. You should be able to get this information on the Internet, from an insurance agent, or from the company itself before you buy. Get a copy of the ratings reports from at least two of the services.

Keep in mind, however, that even though some rating services are more conservative in their ratings than others, you shouldn't consider anything below an "A" rating.

If you're buying permanent insurance, knowing the company's ratings is a must because the company's financial stability is critical. Because your money is being invested, how well it does depends on the company's investments, its mortality costs, and its expenses. Only choose companies with ratings that are in the top two categories of at least three of the ratings services.

As long as you own a life insurance policy, you'll be tied to your insurance company's financial status. If you're using an insurance agent or financial planner who sells insurance, you also have a vested interest in establishing a long-term relationship with that adviser. These are relationships worth researching.

There are plenty of superb financial planners, agents and insurance companies around. If you end up with second-best, it's either because you've not done your due diligence or because you've allowed yourself to be sold a policy rather than buying one that's right for you.

The Internet has greatly facilitated buying insurance on your own and it can definitely be done. But when in doubt, research on your own and then decide if you need an adviser.