When buying term life insurance, make sure the duration of your policy

When buying term life insurance, make sure the duration of your policy matches the amount of time you need it. For example, buy term insurance that stays in force long enough until the kids become independent and also, that the remaining spouse has coverage until he or she, becomes eligible for retirement income.

When you take out a life insurance policy, be sure you know what the options are for cancelling it. If you find yourself unhappy with your current insurance company, remember that you always have the option to cancel the policy you have with them. You want to look over your policy because there are companies that will go ahead and charge you if you decide to cancel a policy. You should be well aware of what the penalties are so that you know what to expect if you decide you'll be canceling your policy.

You need to know what your debts are before getting life insurance. In order to find out home much life insurance coverage you need you first have to know the amount of your debts and how much your funeral will cost. Your life insurance policy needs to be higher than that amount.

When determining how much life insurance coverage you need, don't just think about your mortgage payment and regular monthly bills. If you have children, they'll need financial assistance for college in the future. Although it's not pleasant, consider worst-case scenarios. Should you unexpectedly die in the near future, how much debt will you leave behind? Make sure your policy covers your outstanding debts, or the money you intended to be used for paying off the mortgage for your spouse may end up being used to pay off your creditors instead. You also want to ensure that your funeral expenses and any estate taxes and legal costs are covered.