7 Tips on Purchasing Life Insurance

The choices about if and when to buy life insurance can be confusing.

Here are 7 tips to help you decide:

1. Purchase life insurance policies before your age and health begin to deteriorate to lock-in the best price; premiums rise as you age.

2. Purchase life insurance as soon as you incur liabilities; examples include taking on a mortgage, spouse, or the birth of a child.

3. Know that individuals are not restricted to just one policy but may have multiple policies from a combination of providers, including insurance agents and employee-based benefit plans

4. Take note of total amount of coverage through multiple policies; some individuals with multiple policies are still under insured.

5. Review policy restrictions carefully; for example, accidental life insurance will only pay if death occurs in an accident.

6. Look for the most cost effective plans. Premiums to purchase additional coverage within an employer-based plan is typically not the most cost effective; consider purchasing additional coverage from independent insurance agents.

7. Beware of depending solely on employer-based programs; the loss of employment means loss of life insurance benefits.