Understand what you're buying

An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you're buying. For instance, the policy will tell you:

• Who or what is covered
• What coverage exclusions and limitations apply
• When coverage begins and ends
• How much coverage is provided
• How much you'll pay for coverage (the premium)
• How you report a loss or file a claim

It's always a good idea to ask an insurance professional to explain any terms, conditions, or benefits that you don't understand.

Evaluate your insurance needs periodically

As your life changes, your insurance needs change, too. So every once in a while (annually, some experts suggest), review your insurance to see if you need more (or less) coverage or an additional type of coverage. Here are some times in your life when you'll definitely want to re-evaluate your insurance needs:

• You're getting married or divorced
• You're starting a family
• You're renting an apartment
• You're buying a house or a car, or making a major purchase
• Your child is going off to college
• You're starting a new job or becoming self-employed
• You're buying or selling a business
• Your income increases or decreases substantially
• You're taking care of an aging parent
• You're retiring

Make your life insurance policies work for you by taking the time to periodically review your needs and coverages.