Life Insurance

The main purpose of life insurance is to replace your income for your family if something should happen to you. If you are single, you probably don't need life insurance. If your kids raised and you have planned well for retirement, you probably don't need life insurance. Anyone with children still at home should carry life insurance, unless an alternative plan is in place.

For savings, choose term insurance. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. You will probably be quite surprised at how reasonable it is. There are several companies that can "shop" the rates for you and help you narrow down the field. Select the longest term you can afford and make sure the rates are set for the entire term.

For investment, choose other insurance. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. It is, after all, an investment. Canceling these policies after only a few years can more than double your life insurance costs.

Check your public library for information about the financial soundness of insurance companies and the prices they charge. The July 1998 issue of Consumer Reports is a valuable source of information about a number of insurers.