With all of the life insurance plans available, choosing
a life insurance program that is right for you and your
family can be a frustrating and confusing experience.
Your life insurance plan should be structured to expand
and contract in response to your unique & changing cir-
cumstances. Too much life insurance coverage is a waste
of money. Too little life insurance coverage can create a
financial disaster for your family.
Here are five things that you should pay attention to
when you shop for life insurance:
(1 of 5).
Determine how much life insurance you need. You can
ei ther do this yourself or by obtaining the assistance of
an insurance professional or financial planner who has
an in-depth knowledge of life insurance. There are also
several excellent self-help books & software programs
that can help you determine you life insurance needs.
(2 of 5).
Decide what type of life insurance policy you want; term,
whole life, universal life, etc., or a combination of these
types of policies.
(3 of 5).
Once you have decided how much and what type of life
insurance you want/need, get the best price from the best
company.
The best price that you can get for a particular type and
amount of life insurance is mostly dependent upon your
age, sex, and medical condition. Get three or more quotes.
Today, many life insurance agents have contracts with more
than one life insurance company and can give you compar-
ative quotes.
Also, before you buy life insurance make sure that you re-
ceive independent rating information about the financial
condition of the company issuing the policy. Insurance
companies are rated by rating services like A.M. Best
Company, Moody's Investors Service, Duff & Phelps, etc.
(4 of 5).
Once you receive the insurance policy document, immedi-
ately study it and make sure that the policy is exactly what
you ordered. Make sure you are receiving the same amount
of life insurance you purchased, with the same terms, & for
the same price agreed upon. If you are not satisfied with the
life insurance policy, & are still within the 20 day or so right
of examination period that allows you to return the policy &
get a full refund, return it.
(5 of 5).
Once you decide to purchase a life insurance policy be care-
ful when the agent fills out the life insurance application. Be
sure that it is completed fully and accurately. After the agent
has completed the application read it carefully, check it before
you sign it, and make sure you get a copy. Don't sign any life
insurance application that has not been completely filled in &
dated.
Finally, whether you are considering the purchase of additio-
nal life insurance or your first policy, take the time to shop
around and compare before you purchase. |