When buying life insurance, you should read the contract carefully and, if necessary,
ask your producer for a point-by-point explanation of the language. To help the
consumer, many insurance companies are writing their newer contracts so that they
are more understandable. Keep in mind, however, that these are legal documents and
you should be familiar with what they promise, even though some technical terms
are used.
In addition, the National Association of Insurance Commissioners and many state
insurance departments have prepared buyer's guides to help you further understand
life insurance terms, benefits and relative costs. Buyer's guides are distributed
through your agent and insurance company, so be sure to ask for one. If you have
more questions about companies or policies, many state insurance departments provide
consumer information.