Your choice should depend on your needs, both immediate and future. After assessing your life insurance needs, determine how much it will cost you in terms of annual premiums. Before purchasing a life insurance policy, check if you can afford to pay premiums for the entire policy term.

What is the best strategy when shopping for life insurance?

When shopping for life insurance, the best strategy is to: Figure out how much you need, then comparison shop using the Web and other resources. Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45.

What are the two basic types of life insurance policies?

There are two major types of life insurance—term and whole life.

What to consider when buying a life insurance policy?

Decide how long you need coverage. Life insurance is designed to either last a certain period of time (called term life) or a lifetime (including whole life and universal life). If you only need insurance for a specific period of time (say, when your kids are growing up or for the length of your mortgage), then consider term.

What to look for in term life insurance?

If you’re looking into term life insurance, beware of policies that don’t allow you to “convert” your term policy into a permanent one, says Huntley. This feature typically allows you to exchange your term policy for a permanent plan (such as universal life or whole life) without proving you’re still healthy.

What to consider when shopping for health insurance?

Gone are the days when health insurance policies let you go to whichever doctor you prefer. Now, most policies have networks of participating providers. Using a physician or facility outside the network could result in higher copayments or even a denied claim. Before switching health plans, ensure your preferred doctors will be covered.

What are the different types of life insurance?

There are six types of life insurance policies. 1. Term Life Insurance Term life insurance policy can be purchased only for a fixed period of time like 10 or 20 years. It is a type of life insurance that provides death benefits to the beneficiaries if the insured person dies during a specific time.