If you have dependents and are uninsured, they may experience substantial, perhaps catastrophic, financial difficulties upon your passing. This is particularly true if you have a mortgage or other substantial debt. If you are insured, they’ll be protected against financial disaster…and you’ll sleep better at night.
There are two main categories of life insurance:
Term life insurance
Term life insurance is, as the name suggests, temporary. You may wish to be insured until retirement, or until your children are self-sufficient, or perhaps for the duration of a mortgage.
Most term policies are 10 years in length, although some carriers offer 5-, 15-, or 20-year terms.
Permanent life insurance
Permanent life insurance lasts for the duration of the life of the insured (provided premiums are paid up, of course!) and provides a death benefit to the insured’s dependents.
Permanent life falls into two subcategories: Whole and Universal.
