Why do you need it?

Many individuals tend to put off these insurance policies for years on end, especially for those that are in good health. Unfortunately, the death of a loved one can put an incredible strain on a family’s assets, even for those that are financially stable. This form of coverage will help a family with expenses ranging from the final medical bills and emergency room visits to funeral costs and lost wages. These policies can also be purchased in order to cover very specific upcoming costs such as final mortgage payments, tuition for a child’s education, or to help fund retirement for one’s spouse.

The two primary forms of life insurance are term policies and permanent policies. Term policies are only active for a specific period of time, generally between 20 and 40 years. While this insurance can be active for as little as a year, most will want to have a term policy in place for at least 10 years or longer. This is one of the best options for a family with children that are still living in the house or while paying off larger expenses such as a mortgage or any outstanding debt in their name.

Permanent life policies are the other option and these come in the form of a universal policy or whole life policy. Universal policies are slightly more flexible in the fact that the policyholder can change their premiums depending on their own needs at that time. These policies also build up a cash value over the years that can be used to pay off premiums or taxed and withdrawn. Whole life policies keep premiums identical throughout the years and will stay active as long as the premiums continue to be paid.