Research the Company

Updated July 10, 2020 | Infoplease Staff

Some 1,700 U.S. companies sell life insurance. Make sure you choose a company in sound financial shape and licensed in your state. Contact your state's insurance department. A number of organizations rate the financial health of insurance companies. Many libraries have publications listing these ratings.

Points to Remember:

• Take your time. Make sure you understand what the policy offers and that you are comfortable with the product, agent, and company.
• Make your check payable to the company issuing the policy, not the agent. Get a receipt.
• When you receive your policy, there is often a cancellation period.
• Notify the company or the agent of any errors in your policy.
• It can be expensive to surrender one policy and buy another.
• Contact the company's customer service department with complaints. If you remain unsatisfied, contact your state insurance commission.
• Review your policy periodically, especially when your situation changes, to ensure adequate coverage.

For More Information:

• American Council of Life Insurers, Web: www.acli.com/public/media/mainframe_med.htm
• National Insurance Consumer Helpline (NICH) 1-800-942-2424
• Books and periodicals on personal finance and insurance in your local library
• Consumer affairs division of your state insurance commission