There are two basic types of life insurance, permanent and term. Permanent insurance also protects against the money loss that would occur from your death. You pay for these extra features in higher premiums. Term Insurance Term life insurance provides income for your beneficiaries only if you die during the insured period. In the early years, term insurance costs much less than permanent insurance.
Term insurance has no savings feature.
Because of this, some experts suggest that you buy term insurance and save the difference between the cost of term and permanent insurance. They suggest you put the money saved in an investment which earns a higher rate of interest than that guaranteed on the savings portion of permanent insurance. According to these experts, if you do this, term insurance will be the best buy. What To Buy Before buying insurance, you must decide what is right for you and your family. Don't forget, your family also may be protected by such plans as Social Security, veteran's benefits, or other savings plans.