Once you have determined your life insurance objectives, speak to a qualified insurance professional to design the appropriate coverage for you. To ensure that you choose a good advisor, ask friends and colleagues for personal recommendations. To narrow your search, ask the following:

• Is the insurance company financially secure? Does it have a good claim payment history, good customer service, and competitive prices? Independent companies such as Standard and Poor’s, A.M. Best, Moody’s, and Fitch rate insurance companies, and provide information on their financial solvency.
• Is the insurance company a member of the Insurance Marketplace Standards Association (IMSA)? IMSA is a voluntary organization; companies that qualify for membership adopt IMSA’s ethical conduct principles. IMSA membership demonstrates to consumers that a company is committed to honesty, fairness, and integrity in customer contacts including sales and service of individual life insurance policies. To find out if a company is a member, ask your sales representative or contact IMSA.

Your state insurance department and the Better Business Bureau can provide valuable information on finding a good insurance company. Before buying any life insurance product, be sure to read the policy carefully and get clear answers to all of your questions.

Controlling Costs

Buying life insurance is a significant, long-term purchase for most people. Here are some ways you can save money while purchasing the life insurance that’s right for you:

• Don’t buy insurance if you don’t need it (e.g., if you have no dependents) and don’t buy more insurance than you actually need to provide for your loved ones.
• Shop for a competitively priced policy while you are in good health. Don’t smoke. Take care of yourself by exercising regularly and maintaining a moderate weight.
• Look for a guaranteed renewable policy if you buy term insurance. That way you won’t have to shop for a new policy (with higher premiums) when you’re older, nor will you have to pay more if your health deteriorates.
• Carefully consider additional riders, which are optional forms of coverage, and make sure you really need them.
• Participate in an employer sponsored group life insurance program if you can, even if you have to pay for it. This form of life insurance coverage, known as group insurance, is generally less expensive than comparable plans offered to individuals. You can obtain coverage up to a certain level without providing evidence of good health, and group insurance plans typically provide for continued coverage during periods of disability. Most plans are administered through payroll deduction, a very convenient way to pay for coverage. And finally, most plans allow you to continue your coverage even after you leave employment simply by continuing your premium payments or converting your coverage to an individual policy.
• Shop around and compare coverage, and company quality. Consider getting more than one quote on comparable policies, and ask questions about the policy’s renewal and withdrawal provisions.
  

Regardless of what kind of insurance you purchase, keep in mind that most insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your representative can provide you with costs and complete details.