Deciding how much insurance to buy

You should decide how much life insurance you need. You need to look carefully at your individual circumstances. The real value of life insurance is to protect your loved ones after your death. Before you buy, ask yourself:
• What costs and hardships will my family have to deal with after I am gone?
• How will the loss of my salary affect my family?
These questions require careful thought and perhaps a candid talk with your beneficiaries.
Insurance shopping tips

First, set the goals you want. Then shop around. The cost of insurance varies from company to company—as do their services, standards, and policies.
Research the policy carefully to make sure it meets your needs. Once you decide to buy life insurance, don’t delay! Make the purchase. Your beneficiaries will not benefit unless you buy a policy. Also, if you wait, you could develop a health problem, which could cause the rates to go up, or the company could reject your application.
The company must provide you with a buyer’s guide and a policy summary before they give you the policy. If you do not receive these two items, ask for them.
The “free look” rule
• When you receive your new policy, read it carefully.
• Every new life insurance policy issued in Washington state comes with a 1 0-day “free look” period.
• If you are not satisfied for any reason, you may return the new policy within 10 days after you receive it.
• Mail it to the company’s home office or give it back to the agent who sold it to you.
• Be sure to get a dated receipt from the post office or the agent.
• The company must return your premium within 30 days from the date you returned the policy. If they keep your money longer, legally they are responsible for a 10 percent penalty—payable to you.