Life insurance questions (before you buy)

A life insurance policy is a legal contract between you and the life insurance company. Terms and conditions of a life insurance contract are very important (Not only price).

Have you been supplied with a copy of the application upon which the policy is issued and is all the information in the application true and complete?
Is all the personal information in the policy, including spelling, age, etc. correct?
Is the beneficiary correct?
Is life insurance policy is too difficult or complex for your too understand (don't buy it)?
Is the cost of insurance element guaranteed or adjustable and increasing?
What are your surrender and other charges?
Are the premiums and coverage amount guaranteed?
Is the policy cancelable by the life insurance company?

Life insurance suggestions (before you buy)

Ignore Mail order life insurance / "no-agent", since these canned sales pitches may turn out to be more expensive than competitive insurance normally available on the market.
Never sign a life insurance application before carefully reading and reviewing each question and answer
Comparison shop since there are significant cost differences among life insurance companies for the same type and amount of coverage
Figure out what type of life insurance coverage is best for you so you are not comparing apples and oranges
Financial ratings are neither a promise, warranty or reliable indicator or an insurance company's long-term stability, claims paying ability or solvency.
Never cancel an existing contract before the new, replacing contract, is received and is fully satisfactory.
Pay the life insurance premiums by check or money order always made payable to the insurance company (Never pay the agent cash)
If the policy is unsatisfactory, you normally have 10 days from the date on which you receive it to return it for a full refund.
Make sure the payments you agreed to are accurate
Verify from the policy, the benefits and exclusions are accurate
If the policy generates cash or paid up values, make sure that these are the same as were illustrated.
Request a current dated receipt or regustered recitpt when returning the policy to the insurance company
Review the policy and financial plan periodically.
Keep your life insurance contract in a safe, accessible place (no bank safety deposit boxes).
Advise your family or estate executor of the location of the policy contract.
Answer all questions on the life insurance application truthfully. Non-disclosure may cause a voiding of coverage