An unexpected tragedy can rob you of your ability to care for your family, but a good life insurance policy can protect your family from those things outside your control. Every life insurance policy provides financial security for your family in the event of a fatal accident, so that they can pay burial and final expenses, pay off lingering debts, and have a safety net to help pay for rent, mortgage, education, and other living expenses.
But before you purchase life insurance, it’s important to know the options available to you: term, whole, and universal. Term life insurance is active for a limited time and is usually purchased in 10, 15, 20, or 30 year increments; at the end of the term, this coverage can be renewed.
It’s the most inexpensive option, but sometimes premiums go up when it’s time to renew. Whole life insurance, on the other hand, does not expire or change its premiums, ever. It’s designed for the long haul. Universal life insurance is similar to whole, except that it has more flexible payments.