• Decide how much you need (the amount of death benefits)
• How long you want the life insurance to cover you (1, 5,10, 15, 20, or more years)
• Compare insurance premiums with other companies
• Find out if the insurance policy fees are built into the premiums
• Ask is the life insurance policy is renewable
• Find out if it is convertible to whole life insurance
• Ask if participating life insurance policies are available (potential for dividends)

You can purchase term life insurance from an insurance agent but some companies market term insurance through the mail, internet or TV.

This policy builds cash value and the policy holder can use the cash value to get a policy loan. The loan can only be for the amount up to a percentage of the policy cash value. The loan of course will accrue interest. Note though that if the loan plus interest amount exceeds the cash value, the policy will expire with no value.

The advantage of a Whole life insurance policy is that the policy can return money to the policy holder in the form of dividends, if the company earns a surplus because of profitable operations. Since earnings such a surplus depends on many variables, dividends are never guaranteed.

There are different type of Whole Life Insurance. The most common types are:

Joint Whole Life- provides basic whole life benefits, but two lives are insured under the same policy.

Last Survivor Whole Life-a Joint whole life, designed mainly for married couples.

Universal Life- the policy holder can choose your policy’s face amount and premium and to change these factors while the policy is in effect.

Adjustable Life- allows the policy holder to vary the coverage as insurance needs change.

Indeterminate Premium Life- specifies 2 premium rate- a guaranteed maximum and a lower rate you actually pay. Your premium can never be more than the guaranteed maximum.

Interest Sensitive Whole life- similar to indeterminate premium life, but taken a step further as cash value can increase beyond the state guarantee if economic conditions warrant.