Buying life insurance: A Shopping Checklist

When shopping for life insurance, your goal is to find the right coverage at a reasonable price with a company you can trust.

Getting Ready: Life Insurance Checklist - Part 1

For many, getting started is the hardest part. That's where the Kanetix Life Insurance Checklist can help:

1. What you would like your life insurance policy to achieve?

Ask yourself what it is you want the insurance to do and make note of your answers. For example, do you want to have coverage that will:

• Pay funeral arrangements?
• Pay the outstanding balance owing on a mortgage and other debts?
• Offset the loss of your income? For how long?
• Contribute to the future education of your children?
• A combination of all or part of the above?

Knowing what you would like to accomplish with your life insurance policy will help you determine how much life insurance you need to buy.

Try the Kanetix Life Insurance Needs Calculator for guidance.

2. Who would you like to insure?

Most life insurance companies offer a variety of products to suit your lifestyle and family. You can get a life insurance policy on your own life, or you can get one policy for both you and your spouse (called a joint life insurance policy). The most common joint life policy provides coverage when the first partner dies, leaving the life insurance benefit to the survivor.

For more information about joint life insurance, visit the Kanetix article, "Joint term life insurance explained".

3. How long will you need life insurance?

No, this doesn't mean consulting a psychic. What this means is estimating the timing of your life insurance needs.

• When will your mortgage be paid off? The amortization period of your mortgage will often determine how long your term life insurance policy should be.
• When will your children be finished school? One day they'll finish their education and having enough coverage to pay their educational expenses won't be necessary.
• When are you planning to retire? You will have less income to replace at that time.

Assessing your life insurance needs now before you begin shopping around will ensure you're comfortable with the life insurance product you end up purchasing.

When you're ready for the next step - shopping for insurance - check out Part 2 of our Life Insurance Shopping Checklist. With its tips, questions to ask and information you're sure to find the right coverage at a reasonable price with a company you can trust.