Insuring Your Life

What's your life worth? If you've shopped for life insurance that's sort of what you're trying to figure out. Life insurance can serve as an integral part of your overall financial strategy. Certain life insurance policies can be used for more than death benefit protection, by helping you to achieve your financial goals and adding security to the years you are living. Choosing a life insurance product is an important decision, but it can be a complicated one. As with any major purchase it is important that you understand your needs and the options available to you.

When beginning your search for the right life insurance, first, determine how much coverage you'll need and how much you can afford. A professional insurance agent can provide valuable help by explaining how an insurance plan can be arranged to provide needed protection at the least cost.

Next choose the type of policy that's best for your situation: term or permanent life insurance policies. Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed at the end of a specific period, which could be from one to twenty years. Your premium can be renewed each year (annual renewal term) and the rate increases with each renewal date.

Permanent life insurance policies provide lifelong protection and are known by a variety of names: whole, ordinary, universal, variable and adjustable. These policies offer death benefits and a savings account, (also called "cash value" or "cash surrender value") so that if you live, you usually get at least some of or more than, the amount you spent on your premium. You can get money back either by cashing in the policy or by borrowing against it.

After you've made your decision as to how much and what type of insurance you need, shop around for the best rates. Make sure you fully understand any policy you are considering. If you are uncertain, ask a trusted family member, or your attorney to review the policy with you. When you purchase a policy, make your check payable to the insurance company, not the agent.

Take the time to check on the financial strength of the companies who will have to stand behind the policies you're considering. A number of insurance rating services assess the financial strength of companies. These ratings can be found in your public or business libraries or can be obtained directly from the rating service. Also, contact your Better Business Bureau (BBB) for a reliability report on the company.

If you have a complaint about your insurance agent or company, contact the company's customer service department. If you are still dissatisfied, contact your state insurance department or your BBB.