Nothing is more important than your life and your ability to make a living. So it makes good sense to insure your greatest asset- YOU!
Life insurance isn’t for those who have died — it's for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent (whole life).
Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiaries only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends. A whole life insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums continue to be paid.
Term Insurance provides protection for a specific, limited amount of time such as a 10, 15, 20, 25, 30 years; or to a maximum age, such as 80.
Typically, it provides no cash value but offers a lower premium than whole life.
Often times it provides protection for a specific times of need, such as a mortgage or raising a family.
WHOLE LIFE INSURANCE
Whole Life Insurance is designed to stay in-force for the individual's entire life - normally to age 120.
It has a cash value that accumulates over the life of the policy.
The cash value can be accessed if needed for any reason and certain policies can provide guaranteed income after retirement.