What questions should I ask when purchasing a life insurance?

Hi Valerie,

I'm not a pro so the best person to consult with is your financial planner who can look at your complete financial picture and advise you accordingly. That said, there are a few things you should consider.

1. Make sure you understand your coverage requirement. This is NOT a "bigger is better" thing. You have to determine the amount based on your dependents' needs in absence of your income and presence.

2. Decide between whole versus term. Again this depends on your specific situation - ie, dependents, ability to invest the difference if you choose term, cash flow, etc.

3. Your policy depends on a company that will be around to pay the benefits, so choose financially stable company over the company that offers the lowest premium.

4. Shop around.

5. Read as much as you can between now and tomorrow.

6. Remember that you do not have to buy the policy tomorrow, make sure you take the necessary time to do your due diligence. Buying life insurance could be a lifetime commitment...literally.

I hope this helps.

Answered by Pinyo at Nov 23, 2009 09:08 PM