Using a Broker

It’s best to use a broker who deals with several companies, if you know little about buying life insurance. A broker can educate you about the different options available and how the cash values accumulate. He can even explain to you what the policy will cost you over different periods of time. Although your premium is based on your age, that too can increase over a period of time.
If the protection you want exceeds $500,000, you can purchase a few policies from various companies. Required by law, each state has its own life insurance guaranty corporation.  This is to protect insureds in the event an insurer is unable to pay a claim. But there are limits to this type of protection. The limits here are generally $300,000 up to $500,000 and any policy that goes over this amount are not covered.
Some typical questions to ask your agent are: How do cash values accumulate? In the past year, how has the policy
s cash value performed? Does this policy have any special features? and do add value or are they just bells and whistles? What is the rating of the company with Standard & Poor’s, Best and Moody’s?  These ratings can be found online and in public libraries. If the company is financially stable, they will be listed in the top three.