1. All policies fall into one of two categories: Term policies, or pure insurance coverage and many variants of whole life policies that combine an investment product with pure term insurance and build cash value.

2. Whole life is expensive. Policy with an investment component costs much more than a term policy. That’s why many people who buy whole life often can't afford it and drop coverage when they need it most.

3. Whole-life policies are built on assumptions. The returns quoted by the agent are simply guesses - not reality. Some companies keep these guesses of future returns on the high side to attract more buyers.

4. Keep your investing and insurance strictly separate. There are better financial products to invest for example for our retirement and it is not whole life policy.

5. Buy enough term coverage to fill your needs. Life insurance is no place to skimp, especially with today’s low rates.

6. Match the term of the policy to your needs. You want the policy to last as long as it takes for your dependents to leave the nest - or for your retirement income to kick in.

7. Buy when you're healthy. Older people and those not in the best of health pay steeply higher rates for life insurance - so buy as early as you can, but don't buy until you have dependents.

8. Tell the truth. There's no sense in shading the facts on your application to get a lower rate. Be assured that if a large claim is made, the insurance company will investigate before paying.