Life insurance is a complex product.
While there is undoubtedly mounds of information about life insurance, people seeking to get it are still left with one question, "Where do I start?" Depending on who you know, or what you've seen, you may be stuck on the fence about purchasing life insurance.
There are so many differing views on the product.
Some say that whole life is better than term, some say whole life is a waste of money.
Financial advisors are known for saying buy term and invest the difference.
All this advice for a person looking for a simple answer can make one's head spin.
Unfortunately, there is no set rule for everybody.
Since every individual is different, so is the solution for their situation.
There are, however, some things you can do to assess your needs.
You can use an insurance calculator link at the end of this article to figure out how much coverage you need.
Next, you can compare quotes online free by using a service like Netquote or Insureme.
Use it as a starting point, because rates quoted online could change depending on the circumstances.
Then, talk to an independent broker.
When talking to your broker, you should feel comfortable that they understand your situation and are looking out for you best interests.
Be wary of know-it-alls, those who make quick recommendations, and anyone trying to sell a lot of bells and whistles.
It's perfectly fine to find out how they will be paid, and to question why they recommend a certain product.
Don't listen to everything that people say.
By now you may have heard that term life insurance is the way to go, because whole life is how insurance companies make their money.
Not true, life insurance companies pay out on less than three percent of term policies.
That means that over ninety-seven percent of people with term policies outlive the policies and, depending on their contract, may not have any insurance afterward.
And while permanent life insurance is very expensive, there is a guaranteed death benefit.
Do your research, understand the options being presented to you, and don't make a decision until you are ready.
I have just a few more tips.
Avoid purchasing riders unless you REALLY need them.
Some insurance agents have let it slipp that they are trained to sell riders with policies, so they could actually have more value to the seller than to the customer.
Think about your situation and how a rider relates to it.
If there isn't a good enough reason, don't do it.
Also, don't replace old whole life policies.
There are a number of reasons not to do this, but I will just name a few.
One, you won't be able to get the cash that you put into it back.
Two, you may have to pay all the administration fees of the new policy.
Just buy more life insurance [http://www.
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html] if you need it.