Life Insurance

Two of the most common life insurance policy types are Term Life Insurance and Permanent Life Insurance. Your age and health is one of the biggest factors in cost for obvious reasons. Other factors is how much you want to get insured for i.e. $500,000, 1 million, etc. The amount you choose is up to you, but it makes sense to get the amount your dependents would need after you’re gone. If you don’t have dependents then I don’t think it would make much sense to have life insurance, but that’s just my opinion.

Term Life Insurance

Term Life Insurance is the most simple and usually cheaper option. It basically allows you to buy life insurance in blocks of years (the term) for a fixed price, for example 10-year, 15-year, 20-year, etc. This usually is good enough for most people.

Permanent Life Insurance

Universal Life Insurance is meant to cover you throughout your entire life. Basically a life contract, but you can always terminate the contract, however, you will have to pay a penalty for doing so. What’s great about this is that some of the cash is re-invested and the earnings are tax-deferred!

Whole life insurance is also for your entire life. Premiums are usually fixed.