How To Buy Life Insurance

Calculate how much your family will need if you’re gone. Take into account daily expenses as well as big-ticket items, like college tuition and mortgages. If you’re married, factor in your spouse’s earning potential.

If you’re healthy, consider getting a medical exam. Not all insurers require it, but if you can present a clean bill of health, you’ll have a better shot at a low premium. Just be aware that if a medical condition is discovered, your rate will be higher.

Choose a type of policy. With term life insurance, you pay premiums for a set period of coverage. Permanent options include whole life, which doesn’t expire and accumulates value that you can cash in, and universal, adjustable, and variable life, which are all attached to interest-accruing accounts.

Get quotes from several agencies on their web sites or through their agents, or use a broker to find your best rate. Some web sites provide comparison quotes from multiple companies. Examples of such websites are: &#34http://www.prudential.com&#34:http:// and &#34http://1stinsurancequotes.com&#34:http://. Type “life insurance rates” and “compare” into a search engine.

Before buying a policy, check the insurer’s fiscal health by searching online for its financial-strength rating.

Keep your life insurance documents in a safe place, and make sure your beneficiaries know the location—though hopefully they won’t need it for a long time!