10 Tips for Selecting the Right Life Insurance Policy

One of the greatest financial conundrums would have to be, "How do I choose life insurance?" Here are some guidelines to help make choosing life insurance a little easier.

1. First and foremost, don't feel like you have to rush into a decision. Life insurance is a very important choice you have to make and there is no need to gloss over details and rush the process.
2. When you decide on a life insurance policy, you should be paying the life insurance company directly, not an agent. In other words, if an agent requests that you make the check out in his or her name, red flags should go up.
3. Even after you purchase you can change your mind. The free-look period for life insurance policies are about ten days, during which time you can ask for a full refund.
4. If an agent or life insurance company contacts you about canceling your life insurance policy and beginning a new one, be aware of the ramifications. Sometimes this can be a very bad move, sometimes it can be advantageous. Contact your original insurance agent to help you sort out the facts.
5. You the consumer have power! If you have a complaint about an agent, contact the life insurance company they represent, or state department of insurance. Complaints about an insurance company should go through the state department.
6. Term policies will generally provide military families with the most coverage for the smallest premium and are especially appropriate for young families. (Term insurance protects the policyholder for a specified time period: one year, five years, twenty years, etc. It has no savings feature, and is therefore cheaper than other policy types).
7. Consider your spouses' needs in the future and take his or her age into consideration when selecting life insurance coverage. Your spouse may need to hire more assistance for tasks they once performed themselves or that you may have done including yard maintenance and household chores. Health care and housing should also be factored in when selecting life insurance.
8. Always review your life insurance policy from time to time with your spouse. Your needs may change and you should adjust your coverage as the need warrants.
9. Spend some time learning the difference between term and variable life insurance. You will be able to make a more educated decision on the type of life insurance coverage to buy.
10. Always compare several life insurance companies before you buy. Rates are not the same and you could save thousands over time on your life insurance just by getting life insurance quotes to compare. You can invest the extra money that you saved or use it to by more life insurance coverage.