Life insurance has many uses but is most commonly used to take care of one’s family in the event of an untimely death. If your death will result in financial consequences to one or more people (i.e. spouse, children, business partners, etc) that you consider unacceptable, then you should probably purchase life insurance.
Steps to Purchasing Life Insurance
1. Do your best to figure out which type of life insurance and how much life insurance is appropriate for you. Broadly speaking, there are only two main life insurance policy types, permanent (i.e. whole, universal, etc) and term. There are valid uses for both permanent and term insurance, but if it helps, I personally use term insurance and think term is probably more appropriate for most people.
2. Obtain life insurance quotes from a number of different companies. Quote Guardian is one free site where you can quickly and easily obtain quotes from a number of different insurance companies all at once. Obtaining multiple quotes can help you find the best deal possible and save you thousands of dollars over the life of the policy.
3. If appropriate, consult a life insurance professional.
Take your time. This is not a decision you want to rush. Shop around, do your homework, and make sure you are comfortable with a policy before signing on the dotted line.
For additional life insurance information, see our Life Insurance articles in the Personal Finance section of the site.