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Consumer Tips -
Shopping for Life Insurance |
- Figure out exactly what type of life insurance you need before you contact any insurance agents.
- Term Life Insurance - this type of life insurance is considered the best value for the money by many insurance experts. But remember that you don't build up any cash equity in the value of the term life insurance policy. Plus the annual premiums may increase each year and the policy may have be renewed each year.
- Whole Life Insurance - usually sold with a level premium cost each period for the policy life. Cash value of the policy will be built up over the term of the policy. You may be able to borrow against the value of the policy. There are many other forms of life insurance, have your insurance agent explain the differences.
- Research the company you are buying from. You can check the reliability of the insurance company at your local library or with your state insurance commissioner.
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- You don't need to buy life insurance on children. They don't have a family to support with their income. When they have their own family, they can buy their own life insurance. You are buying insurance to protect your family if they lose your income.
- Have the insurance agent explain all aspects of the policy in detail. Take your time and ask questions. Ask questions before you buy.
- Ask if there is any surrender penalty if you drop the policy.
- Again research, research, research. Learn as much as you can about the life insurance policy and the insurance company selling the policy.
- The insurance industry is very competitive. Shop around for the lowest premium prices with the best benefits.
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