Your insurance policy should come as close to making up the difference as you can afford. Any immediate needs at the time of death, such as medical expenses, burial costs, and estate taxes. Funds for a readjustment period, to finance a move or provide time for family members to find a job. Ongoing or future financial needs, such as monthly bills and expenses, daycare costs, college tuition, or a spouse's retirement. Use the Life Insurance Planner to help determine how much life insurance you need.
Term insurance provides a death benefit for a specified length of time.
Permanent life insurance provides a death benefit when you die, and it also accumulates a tax-deferred cash surrender value. The kind of coverage you decide on depends on your unique circumstances. For many, a combination of term and permanent insurance could be a good solution. It pays a benefit only if you die during the term. It's usually the best choice when you need life insurance for a limited number of years or if you are concerned about being able to afford the premium payments.