Life Insurance: Make Sure You Know What You Are Looking For.

3/29/2012 11:05:00 AM

Life insurance is not easy to shop for. There are so many providers and so many options that it is all too easy to get lost. A little research can equip you to find your way. This post will present a few handy tips to keep you on the right track to good life insurance deals.

Review your life insurance policy yearly. You should look over your life insurance policy once a year. If you have had a major change in your life you need to contact your insurance agent, as it may have an impact on your insurance needs. Examples of this include the birth of a child, marriage or divorce, or a change in the health of your partner.

To keep your life insurance premiums reasonable, be careful with your driving record. Not only does this help your auto insurance, it is also a factor used for many life insurance companies. Risky driving behavior makes you a higher risk for a fatal car accident and the added risk appears in your policy premium. Drive safely and benefit on both your life insurance and auto insurance premiums.

When buying life insurance, keep in mind that your hobbies can have a significant impact on the size of your premiums. If high risk sports like scuba diving, race-car driving or parachute jumping are activities you frequently engage in, then you will likely pay higher rates to get insurance coverage. While many are tempted to hide their activities, be aware that accident claims can be denied when participation in such sports is not disclosed.

When purchasing a life insurance policy, you should refrain from purchasing expensive riders unless you really understand and need them. Your adviser may tell you that you should add certain types of riders, but most of the time, you don’t need them. Typically, riders do not give you any benefits except under certain circumstances.

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