Choose the Life Insurance That's Right For You
All insurance policies are not the same. Some cover your lifetime. Others cover you for a specific number of years. Some build up cash values. Others do not. Some policies combine features. Others let you change from one kind to another. Some policies may offer additional benefits while you are living.
There are two basic types of life insurance: term insurance and permanent insurance. Term insurance generally has lower premiums but does not build up cash value that you can use in the future. You may use a combination of permanent life insurance with term insurance during the period of your greatest need for life insurance to replace potential lost income. When you buy life insurance, you want coverage that fits your needs and your income.
First off, determine how much you need, for how long, and what you can afford to pay. Keep in mind the major reason you buy life insurance is to cover the financial effects of unexpected or untimely death. Life insurance can also be a great way to plan for the future.
You can choose the policy that protects your family in case of early death, the one that works best if you live a long life, or a combination. It makes good sense to ask a life insurance professional to help you decide. They can review your needs and advise you on which policy is best for you.