Individuals shopping for a life insurance policy should calculate the coverage needed and select a reliable, highly rated insurance provider before purchasing insurance, recommends Market Watch. Estimate the money your spouse and family may need, and add in mortgage, college and major health expenses to determine the amount.
Individuals may reduce the cost of life insurance by subscribing to a group life insurance at the work place, suggests Market Watch. A term insurance that provides the beneficiary with a lump sum that can be used to meet living and college expenses and pay off debt should be the first choice. An individual can calculate the term of the insurance by estimating how many years he needs to support his children before they become financially independent and obtain insurance only for this term, says Market Watch.
Opting for life insurance when younger can reduce the premium, explains Market Watch. When shopping for life insurance, persons should take into account the financial costs of replacing the childcare and housekeeping work done by a non-earning spouse, and obtain insurance for them as well, states Market Watch. If purchasing a whole-life insurance, individuals should be wary of the high returns promised as administrative costs can reduce the actual returns received when the insurance policy matures, explains Market Watch.