1. There Are Really Only Two Kinds of Life Insurance 
You have term life, or pure insurance coverage, and whole life, or cash value policies. Regardless what the agent or financial expert tells you, life insurance comes with many fancy names and variants like variable life, universal life, and blah, blah. But all of these products are either pure life insurance or else life insurance combined with some type of investment product. In most cases you will get a better investment return elsewhere!
2. Life Insurance is Sold, Not Bought!
Insurance companies pay very handsome commissions to their agents; often with whole life products, the first year commission is 50% or more, and the agent continues to receive a commission every year as long as you keep paying the premiums. There is no end to the methods and techniques that life insurance agents have mastered to convince you to buy whole life insurance and buy more of it!
3. Whole Life Costs More
In nearly every case, a policy with an investment component will cost you significantly more than a term life policy. The worst part of this fact is that many people who purchase whole life policies can’t afford the premiums and end up under insured. Or, even worse, when times are rough, they are unable to make premium payments and can end up losing the investment portion.
4. Whole Life Investment Assumptions
The agent will show you how your $100,000 whole life insurance policy will be worth $1 million or more by the time you retire! And, while that looks great on paper, remember that it is always based on assumptions he builds into your quote. A reputable insurer will require the agent to show you multiple quotes, with assumptions based on various investment returns, but he will always point to the more attractive version!
5. Invest and Insure Separately
While an advantage of whole life insurance is that it does force you to save some portion of your money each month, quarter or year, you can invest your money for much better returns elsewhere. Think of it; how can this be the best investment vehicle when the agent is receiving 50% or even more in commissions?
6. Buy Term Life Insurance to Cover Your Needs
Life insurance rates are very low compared to even 20 or 30 years ago. Buy enough to cover your needs for the foreseeable future. The money from your life insurance policy should be adequate to support your dependents until they are old enough to support themselves and your spouse in the case that he or she does not have other sources of income.
7. Buy Life Insurance While You Are in Good Health
As you get older and potentially experience health problems, life insurance rates get more expensive. A term policy that is annually renewable or renews in 10, 20 or 30 year increments is generally your best option!
8. Be Truthful on Your Application
Don’t lie on your life insurance application to save a few dollars; it won’t be worth it should your family need to make a claim that gets rejected when your insurer investigates!
9. Shop Online
You’ve already taken the best first step by visiting Surf Rate to learn about life insurance. Using the Internet, you can compare rates and terms from competing insurers easily and at no expense. Happy shopping and here’s hoping you will never need the life insurance policy you are about to buy; with good planning and luck by the time of your death, your assets will be adequate enough that life insurance coverage will not be necessary!