Life Insurance Buyer's Guide Part 2

How Much Do You Need?
What Is the Right Kind of Life Insurance?
If you decide to replace your policy, don't cancel your old policy until you have received the new one.
Review your new policy and decide if it is what you wanted
It may be costly to replace a policy. Much of what you paid in the early years of the policy you have now, paid for the company's cost of selling and issuing the policy. You may pay this type of cost again if you buy a new policy.
If you are older or your health has changed, premiums for the new policy will often be higher.
You will not be able to buy a new policy if you are not insurable.
You may have valuable rights and benefits in the policy you now have that are not in the new one.
Consider changing the policy you have now or add to it to get the coverage or benefits you want
Check with the agent or company that issued you the one you have now
Examine updated illustrations to see how your policy has performed and what you might expect in the future, based on the amounts the company is paying now.
How much of the family income do I provide?
If I were to die early, how would my survivors, especially my children, get by?
Does anyone else depend on me financially, such as a parent, grandparent, brother or sister?
Do I have children for whom I'd like to set aside money to finish their education in the event of my death?
How will my family pay final expenses and repay debts after my death?
Do I have the family members or organizations to whom I would like to leave money?
Will there be estate taxes to pay after my death?
How will inflation affect future needs? As you figure out what you have to meet these needs, count the life insurance you have now, including any group insurance where you work or veteran's insurance. Don't forget Social Security and pension plan survivor's benefits. Add other assets you have:

Real estate
personal property Which assets would your family sell or cash in to pay expenses after your death?

All policies are not the same. Some give coverage for your lifetime and others cover you for a specific number of years. Some build up cash values and others do not. Some policies combine different kinds of insurance, and others let you change from one kind of insurance to another. Some policies may offer other benefits while you are still living. Your choice should be based on your needs and what you can afford.

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