How Cheap Is Life Insurance? 
When you think about the cents on the dollar that you spend for life insurance ... it 's extremely cheap . Figuring out what type of life insurance to buy is a more involved process . Everyone 's needs are different , meaning there 's no one size fits all policy in life insurance . What 's right for you depends on what need -LRB- s -RRB- you 're trying to take care of in the event of your death . Term insurance is ideal for short term protection -LRB- e.g. paying off a mortgage or providing income in the event of an early or unexpected death -RRB- . Permanent insurance is ideal for long-term protection , estate planning , retirement planning and other needs . Many people buy both types of coverage - some permanent to protect against the future after other debts are paid off and some term to cover time-limited debts -LRB- such as a mortgage , car , etc. -RRB- . Term insurance provides more bang-for-your-buck up front , but it 's only for a short period . Permanent insurance allows you to pay the same premium for the rest of your life without having to worry about it going up in the future . The advantage of permanent insurance is that it 's going to eventually pay out a claim -LRB- if structured properly -RRB- because it 's an inevitability , not a possibility . Term insurance acts more like a gamble . There 's pros and cons to both sides and it 's important to review your options with an experienced life insurance agent who can go through all these things with you and find the structure that will best meet your needs and your budget . 