Life insurance is not the type of insurance that many people think about on a daily basis. Although your everyday activities may affect your life insurance, it is not required by law and many people don't think about obtaining it until they have married or have had children. Life insurance policies are for those that still live after someone has died. If you have a family and help to support them financially, obtaining life insurance is a good plan to have. If something happens to you, your loved ones will not be left without financial support.
There are two major forms of life insurance that you should know about before making your decision to obtain it. They serve the same purpose, but they offer the purchaser of the policy some different features.
Term life insurance offers the purchaser a low monthly life insurance rate, or premium, in exchange for a limited term for the policy's existence. Term life insurance policies can be purchased for 5, 10, 15, 20, and 30 year terms, depending on the needs of the purchaser and the beneficiaries. Many people purchase this type of life insurance to protect their family while children are growing up or before they have reached retirement. Getting a term life insurance quote from several different term life insurance companies is a good idea so that you'll have a better understanding of what sort of term life insurance rates you'll be paying and what sort of policy you can get in return.
Whole life insurance offers an unlimited life insurance policy to the holder. This policy does not expire, so it will continue throughout your lifetime. Some of the whole life insurance rate that you will pay each month will go towards an investment, although this can sometimes be an expensive route to investment. Whole life insurance policies are generally a good idea for those who want to have money set aside to pay for taxes on their estate after they pass away, or intend to hold onto it for longer than 20 years. Both kinds of life insurance have pros and cons, but they are generally for two separate groups of policyholders.
Be sure to discuss with your insurance agent or life insurance company to see what type of life insurance plans they offer. Your term life insurance rate or your whole life insurance rate will vary greatly depending on a number of factors, including general health, the length of the policy, and who it covers. It's a good idea to get several term life insurance quotes or whole life insurance quotes so that you get the best deal for your financial situation.