If you know for a fact that you're going to live to age 100, then you can skip the insurance section. The policy provides funds to cover the planned and unplanned expenses which occur after death. Well, I can't think of a nice way to put this, but if your death will have no financial impact on anybody, then you can skip insurance. Single people with no kids will make up the bulk of this category. If you've got a spouse or children, life insurance is a must.
People sometimes forget to insure the life of a nonworking spouse.
Even though they may not generate income for the family, they may be the one rearing the children. If this person dies, the working spouse will need to arrange alternative child care which could be rather expensive. Term insurance is the cheapest of the four types, mainly because it is temporary coverage and it doesn't have a cash value. The other three types are permanent coverage. Term insurance is ideal for young couples and parents who have limited cash, but a definite need for protection.