Choosing a life insurance policy can depend on a number of factors, including your age, health and number of dependents.Between term and whole life policies, there are a lot of options that can be confusing. A simple online search can yield hundreds of head spinning results and it can be very difficult to understand what type of policy might be best to fit your needs.
Consumer United has compiled a few tips to help make shopping for life insurance a little easier.
- Become familiar with the differences between term life policies and whole life policies. Term policies cover a designated period of time and the amount of coverage needed often varies depending on anticipated financial obligations such as a mortgage or tuition payments. Whole life policies, on the other hand, are often used to cover end of life expenses and are more likely to be utilized as a financial planning tool.
- Understand what you're entitled to under the so-called "free look" laws in your state. Free look laws allow you to purchase an annuity or life insurance policy and change your mind within a limited period for a refund. The types of policies covered and the time allowed to reverse a decision vary widely by state, from zero to ten days in some states to sixty days in others. These laws allow for a comprehensive review of the policy before you're legally bound to its terms.
- Make an informed decision when selecting your life insurance provider. For example, many employers offer life insurance, but the coverage may expire if you leave the company or retire, and that coverage could be hard to replace if you develop medical conditions. It's also very important to understand all of the terms and conditions of your policy, so make sure you trust your provider before you purchase a policy.
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