Buying life insurance forces us to recognize that we won't live forever, and some people seem to think that if they talk about dying it will happen to them. But, to my knowledge, talking about dying never killed anyone. Another reason people may avoid discussing life insurance is that they don't know a lot about the subject. If that description fits you, let's take a quick look at some insurance basics. If your money is tight, term may be your best choice.
Term is purchased for a set period of time, five years, ten years, and so forth.
As you grow older the cost of term increases because the potential for death increases, and so does the potential for a claim. Whole Life Whole life insurance usually has a monthly or yearly fee that starts out higher than a term policy, but it does not increase with age. As you pay into the policy, it accumulates a cash reserve, which is used by the insurance company to offset payments at a later time. This type of insurance is purchased for your entire lifetime. Think about this Your insurance policy should take into account your lifestyle, which means you'll come out cheaper if you're living healthier.