Avoid Narrow Coverage

Most experts warn against buying any insurance policy with extremely narrow coverage. Cancer insurance, for example, makes no sense when other policies can cover a broader array of health ailments.

Industry experts generally recommend a life insurance benefit of five to 10 times annual income, depending on how many debts and dependents you have.

With enough basic life coverage, you can avoid unnecessary life insurance gimmicks, Rutgers's Feinman says. For example, there is no need for extra life coverage folded into travel insurance products or for credit life insurance that pays off debts when you die.