- Compare similar products. When you price shop, make sure you compare similar products. Researching prices on policies and options that are very different won't really give you a clear pictures of your possibilities.
- Don’t replace old whole-life policies. If you have had a whole-life policy for several years, try not to replace it. You may lose all the premiums you have paid. You may also have to pay new administration fees (if applicable), and reset some clauses (such as the suicide clause). If your situation has changed and you need more insurance, just buy more. (This warning does not apply to term life.)
- Do not buy expensive riders. Stay away from them unless you fully understand them and need them. Purchasing options and riders you do not understand could result in expenses and situations you are not prepared for.
- Do your homework. Make sure you do your homework before purchasing an insurance product. Make sure it fits your needs and budget, and make sure you understand the contract. Ask as many questions as you can and get a full understanding of your policy before signing any documents.
- Keep it simple. Do not make your insurance planning complicated. Because it is based on protecting your family, it should be based on your needs. While options and add-ons may seem beneficial, only do what you need!