What Type of Life Insurance to Buy?

I want to purchase life insurance but I'm not sure which type is right for me.

Well, there's two basic types of life insurance - Term and Permanent.

Permanent life insurance, also known as whole life insurance, is a type of life insurance plan that guarantees you lifetime proetction as long as your premiums are paid. And, permanent life may build up some cash value inside the policy, from which you may be able to take a loan.

Term life insurance is temporary coverage usually for a period of 30 years or less. Most term life plans offer coverage for a duration (term) of 10, 15, 20 or 30 years.

Term life costs a lot less than permanent life insurance which usually charges 2 to 3 times more for the same amount of life insurance compared to term life rates.

With term life you get the most life insurance at the lowest price, for a period of up to 30 years.

Keep in mind, you can own a permanent life policy for your longer term needs, and a separate term life policy for your shorter term needs, that way you save money instead of buying all permanent life insurance.

Here's how you can compare term life insurance versus whole life insurance