5. The choices in life insurance policies are bewildering. Keep one thing in mind: if you don't need it, don't buy it. Life insurance needs differ depending on your personal situation. If you have no dependents, you perhaps don't need life insurance. If you don't generate a major percentage of your family's income, you may not need life insurance.

If your salary is important for sustaining your family, paying the mortgage or other recurring bills, or sending your kids to college, life insurance is important to ensure that these financial obligations are covered in the event of your death. You must also evaluate life insurance policy with your agent or company in every few years to keep up with changes in your income and your needs.

6. Insurance claim should be processed by the companies without delays. In case of life insurance claim, all kinds of additional documents and information should be asked for by the insured within the duration of 15 days of the receipt of the claim.