Here are a few tips
to keep in mind about your Life Insurance purchase:
- Take your time. On the other hand, don't put off an important
decision that would provide protection for your family. Make
sure you fully understand any policy you are considering and
that you are comfortable with the company, agent and product.
Don't rush into a decision, but don't put it off either.
- When you purchase a policy, make your check payable to the
insurance company, not to the agent. Be sure you are given a
- After you have purchased an insurance policy, keep in mind
that you may have a "free-look" period - usually 10
days after you receive the policy - during which you can change
your mind. During that period, read your policy carefully. If
you decide not to keep the policy, the company will cancel the
policy and give you an appropriate refund. Ask your agent.
- Review the copy of your application contained in your policy.
Promptly notify your agent or company of any errors or missing
- Ask when your Life Insurance policy becomes effective. This
could be different from the date the company issues the policy.
- If an agent or company contacts you and wants you to cancel
your current policy to buy a new one, contact your original
agent or company before making any decisions. Surrendering your
policy to buy another could be very costly to you.
- If you have a complaint about your insurance agent or company,
contact the customer service division of your insurance company.
If you still are dissatisfied, contact your state insurance
department. Most departments have a consumer affairs division
that can offer help.
- Review your policy periodically or when your situation changes
to be sure your coverage is adequate.
- Most state insurance departments require companies to provide
consumers with a buyer's guide to help them understand Life
Insurance terms, benefits and costs. Ask your agent for a copy.
Where else can I get
information about insurance?
- NW Insurance Council
at (800) 664-4942.
- Insurance Information Institute
at (212) 346-5500.
- National Association of Insurance
and Financial Advisors at (703) 770-8100
Council of Life Insurers (202) 624-2000
- Your personal insurance agent and company are good sources
of general information when it comes to insurance.
- Look in your local library for magazines or books on insurance
or personal finance.