Our advice: Do your homework. Life insurance is not a product suitable for impulse or uninformed buying. The too-good-to-be-true ads promising low, low premiums are almost always offset by future increases in premiums after the initial term period, or by concessions on dividends or cash value or even coverage. There’s enough competition among established companies right now to allow you and your insurance agent to negotiate a very good deal.
If you are considering the purchase of life insurance, specifically request an illustration of the projected annual premium cost, dividends, and increase in cash value, which you can review with your agent to determine the net cost of the life insurance.
Do this before you make any commitment to buy. Do the same work for any life insurance policies you want to cancel or replace with new insurance. Request an inforce illustration and review the projected cost, dividends, and cash values with your insurance agent.
Resource Report #30: Your Insurance: Get the Most from Your Life Insurance Dollars and Protect What You Have