Life insurance is one of the most interesting and flexible financial products ever created. It single-handedly can solve a myriad of problems. The 2 greatest issues people face is dying too soon or living too long and outliving their money! A sound life insurance policy can pay off a lump sum at death and is also tax free.
TIP #1. Find a good independent agent/broker. First, the price of life insurance is the same whether you go through the internet or use a broker. So why not get the professional advise you need face to face and for free? Life insurance can be confusing, is different than other types of insurance and needs to be custom-tailored to the buyer based on need, income, budget and family situations. How can a broker who only represents 1 or 2 companies find the right product at the right price for you? Also, I suggest searching for an agent with advanced-planning life insurance designations like CLU (Chartered Life Underwriter) or LUTCF.
TIP #2. How much do I need? Good question. Each situation is unique. Some advisors say 5-7 times annual income and go to 10 times if there’s young kids and a lot of debt. People ask me, “Robert what is the best policy”? I tell them the best policy is the one that pays when you need it! A spouse never said to me what type of insurance is it, they only ask how much and do I have to pay tax on the proceeds. I suggest buying what your need is first and worrying about what type it is later.
TIP #3. What type should I buy? This question is unique to everyone and also based on personal beliefs. The 2 primary types of life insurance are term and whole life. Term is temporary, has no cash value and eventually terminates or runs out. Whole life is permanent, has a cash value and other tax advantages. There are pluses and minuses to each.
TIP #4. Take a look at some of the newer hybrid policies. For those people that say “whole life is too expensive and 20 year term is also unsatisfactory because after 20 years I lose the insurance and all the money I put in” there’s a great alternative called (ROP) return of premium term.
For example, if a 35 year old buys a 20 year ROP term and lives the 20 years, he/she would then get back 100% of all premiums paid in a lump sum with no taxation. There are also life insurance policies that have long-term care riders that can cover that risk without having to buy an expensive long term care policy. This way you are getting both types of insurance in one policy. Food for thought.
TIP #5. Get a second opinion. After the new census information released in 2010 reflected longer life spans, the insurance companies were forced to lower rates. We have been able to help folks with existing policies save money on premiums even though they are now older and perhaps in worse health. For more information feel free to go to www.InsuranceDoctor.us
Call Robert at 917-359-3985 
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By: Robert C. Intelisano CLU, CSA, LUTCF, The Insurance Doctor