Co-Founder, Coastal Financial Partners Group, California
I know this will sound trite, but you choose a good policy with good advice which means first choosing a good life insurance professional. Also consider that one must choose the right policy, not just a good one. By that I mean, choose a policy that matches the need. If you have a temporary need, term is fine and is inexpensive relative to permanent life products. If you have a permanent need, do not buy term insurance as it is a good product but the wrong solution. Also consider the company you choose since they need to be around to pay the claim - look for top rated insurers. Again, a life insurance professional will help you with all of this.
Owner/Insurance Broker, KM Health Insurance Services, Hazel Crest, Illinois
This is an excellent Question. You want a company that has good rating i.e Moodys and one that has been around for a long enough time to have proved themselves. Aside from that you want to go with a company that have the products that you are seeking.
In addition to selecting a good life insurance professional and a company with good rating, you choose a good life insurance policy by knowing the features of the policy.
Are the premiums guaranteed to stay the same for x number of years (for Term life or some Universal life) or are they guaranteed to stay the same for the rest of your life (for Whole life or GUL)?
Will the policy pay 100% of the death benefit from day one for death by any reason (except suicide in first two years)?
Is the policy convertible to a permanent policy? If so, how long and to what product(s)?
If accumulating cash value, what is the guaranteed interest rate? You will want to see an illustration showing policy values and cost indexes.
What riders are available and what is their cost?
Details like this can cause you to choose one policy over another, so don't be afraid to ask questions.
Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
Bottom line question: What is the best type of life insurance to have? Bottom line answer: The type that is in force when you die.Keep in mind that life insurance is the only financial vehicle that provides an income-tax free lump sum of money to the one who depends on the insured person financially upon the trigger-point of the contract: the death of the insured. Focus on that death benefit or face amount. Don't be distracted by cash values, living benefits, etc. to begin with. (That can come later). As far as choosing a "good life insurance policy", the answers are endless. But, here are a few basic parameters to guide you to the answer that is best for you:1. Ask the beneficiary, "What would you do if I (the proposed-insured) were to die today?". "Do" is the key word. This is not a quantitative inquiry. It has to do with values. What matters most to the person you care about?2. Then, "what would be the negative financial impact to the beneficiary if I were to die today?" This isn't that hard for most people. It has to do directly with what the beneficiary believes they would do if the insured dies. For instance, if the beneficiary would sell the house, don't put that into the equation. If there's debt, do put it in the equation. Income replacement is typically the most important. But, it may not be if there are no children and the beneficiary has a career. See? It all depends on what the beneficiary would do. 3. Once the amount is determined, my suggestion is to first buy a permanent plan of insurance that would cover final expenses. That doesn't have to be a large face amount. But, it should be big enough to take care if immediate funeral and burial costs projected to mortality age.4. Cover the rest of the need with low-cost, guaranteed level premium and fully convertible (exchange all or part of the term to a permanent plan of insurance without the need to medically qualify) term.Now you can discuss bells and whistles. But, only pay the extra amount those cost if (big if) they have value specific to your situation. An experienced agent who actively listens (let's you talk more than s/he does) can guide you.
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Are the premiums guaranteed to stay the same for x number of years (for Term life or some Universal life) or are they guaranteed to stay the same for the rest of your life (for Whole life or GUL)?
Will the policy pay 100% of the death benefit from day one for death by any reason (except suicide in first two years)?
Is the policy convertible to a permanent policy? If so, how long and to what product(s)?
If accumulating cash value, what is the guaranteed interest rate? You will want to see an illustration showing policy values and cost indexes.
What riders are available and what is their cost?
Details like this can cause you to choose one policy over another, so don't be afraid to ask questions.