Any type of insurance is designed to offer protection and compensation in the event of a loss, but there are few subjects with more of a squirm factor than life insurance. No one wants to think
about his or her demise or the demise of a loved one, but life insurance is a part of planning
that should not be overlooked or avoided.

One of the primary things you need to do before buying life insurance is improve your health.
If you’re a smoker, stop. If you’re overweight, drop some excess pounds, which could help lower your blood pressure and cholesterol. Any lifestyle activity or condition that contributes to poor health could raise your life insurance premium.

Project what your needs will be. Life insurance is not a one-size-fits-all purchase. Everyone’s needs are different, and they can change from year to year. Although you want life insurance to pay your funeral expenses, cover your lost income and pay off debts, don’t neglect future expenses such as a college education for your children.

Your non-monetary income is a factor, too. Don’t forget about the loss of benefits that came with your job, such as health insurance and retirement account payments.

You also need to determine what type of insurance you want. One of the most common forms is term life insurance. Term life insurance provides a death benefit for a specific time period, or term. It was developed to provide temporary protection on a limited budget. Since term insurance can be purchased in large amounts for a relatively small initial premium, it is ideal for short-range goals such as life insurance coverage to pay off a loan, or providing extra protection for people whose children are at home.

Another option is a permanent life policy, which provides lifelong insurance protection. It pays a death benefit no matter at what age you die. It includes a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings factor, premiums are generally higher than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.

If possible, pay your entire annual premium all at once. If you opt to pay monthly, it will increase your rate and interest payments.

Don’t wait until you’re older to buy insurance. The older you are, the more expensive it will be. Buy it while you’re young and your premiums will be lower. Plus, some plans give you the option to lock in a “level premium,” meaning it won’t increase as your age does.

Be prepared to submit to a physical exam, including a urine or saliva test to determine your baseline health and determine whether you are smoke or dip snuff. Most insurance companies also will ask for permission to obtain medical records from your doctors, so be honest up front about your medical history and past treatments because the insurance company will find out.