YES!  The company does matter when you purchase life insurance. It’s important to understand the assets and liabilities of the compay, its third party ratings, and whether it’s a stock or a mutual company.

And, no, the company doesn’t matter.

You see, well, it depends…

Do you have term insurance?  If so, is it level for 5-, 10-, 15-, 20- or 30-years? Do you have the Waiver of Premium rider or the Return of Premium rider?

Do you have permanent insurance? If so, do you have universal life, whole life, or a blend of term and whole, also known as a “hybrid” or “blended” product? Is it variable or traditional (fixed), or is it an equity indexed plan? Are the premiums guaranteed, and is the death benefit guaranteed? If so, for how long?

Confusing? I might be able to help!

Life insurance can be owned or rented. If you purchase a “permanent” policy, the objective of the policy is to remain in-force until the day you die. If you purchase a “temporary” policy, the objective of the policy to remain in-force for a specific number of years.

However, keep in mind that a policy that is initially acquired to be permanent may turn into temporary coverage if the policy is not adequately funded.

Life insurance, as a financial vehicle, is very difficult to understand. The death benefit and premium are perhaps the easiest components to determine, but that’s where the simplicity ends.

- What’s guaranteed and what’s not guaranteed…?

- Is the premium fixed or flexible - the amount and when it’s due…?

- Are there cash values illustrated in the policy…?

- How do the policy’s costs, expenses, and returns have an impact on the current and future performance of the policy…?

- What happens to the policy if the premium is not paid in cash…?

- How reliable is the illustration that I’m looking at…?

These are just a few questions to consider when trying to understand what policy you have and/or what policy you’re contemplating to purchase.

The amount of life insurance that someone needs is NOT necessarily a multiple of one’s income.

Define what your financial objectives are, what resources you have available to offset those objectives, and with certain assumptions (investment rate of return, inflation rate, and tax rate), you’ll know if there’s a gap between your objectives and your resources.

Understanding all of this should help you determine the proper amount of life insurance that you need to fill in this gap.