How do you choose the right life insurance policy for yourself and your beneficiaries?

Research all available forms of life insurance including term, whole, universal, variable, and others. If you have means or/and knowledge to invest your spare income in IRA or any other investment vehicle, don't go for anything else than term life insurance. Insurance companies are not considered to be the best money managers. Choose a company with a good rating by rating agencies like S&P and A.M Best. Any broker will provide you with this information. Finally, choose a premium that you will be able to afford and a contingent outcome value that will be meaningful to your beneficiaries. To check if the payout will be meaningful, ask the broker (or friend with a financial calculator) to discount the contingent outcome for several time frames at the potential inflation rate (e.g., 3.5%). This can also be calculated easily in MS Excel. I would recommend you do a basic study on life insurance. Educating yourself about life insurance will help you make an informed decision.

When choosing a policy you would need to consider personal factors like age, family history, how much life coverage your family would need in the event of your untimely death, and your current financial situation against your liabilities.

There are many online insurance quote providers to help you. I would recommend that you use the ones that are accredited by the Better Business Bureau. After filling a questionnaire, they will provide you with free quotes from multiple life insurance companies. This will help you get the best policy at the most affordable rates. Don't go for the cheapest-look for free riders, waiver options, etc. Also make sure you check the company's ratings. An A++ is the highest rating. Such ratings should be provided by A.M. Best or other such reliable rating services.