- Understand your needs.
- Understand the different types of life insurance policies (term life versus permanent life).
- Find the right policy that suits your needs.
- Determine how much coverage you need.
- Recognize that some insurance products are for protection — not investing.
- Ask the tough questions.
- Compare similar products.
- Don’t replace your already existing life policies. If you have had a life policy for several years, try not to replace it. You may lose all the premiums you have paid. If your situation has changed and you need more insurance, just buy more. (This does not apply to term life.)
- Do your homework. Make sure you do your homework before purchasing an insurance product. Make sure it fits your needs and budget, and make sure you understand the contract.
- Take a 30-day free look period. You have 30 days to look at the policy and understand it. If you are not satisfied with it during that time, contact the insurance company to answer your queries.
- Keep it simple. Do not make your insurance planning complicated. Because it is based on protecting your family, it should be based on your needs.