We have a lot of questions from people about life insurance, and one of the biggest questions is: What Type of Life Insurance Is Best for me? To answer this question, I would have to know what you expected to get out of your coverage. People want to use their policies for different things, and people want different amounts of coverage. Let me get you started on things you should consider.
Term Life insurance is best for many people who just want to buy life insurance for a set amount of time, usually the term of a mortgage payoff or working years or the years when children are young. That is because term policies are pure life insurance, and as the name implies, they are in force for a set term of time. So a 35 year old with a mortgage and two young kids and a spouse who stays home with the kids would probably consider term for the buld of their coverage.
But why do I say the bulk of coverage? That is because a permanent policy has uses too. Whole life insurance lasts as long as it is kept in force (premiums are paid, or the policy is paid off), and does not expire after a term. It can also build a cash value, and even be borrowed against. Many people want permanent coverage to transfer their estate to their heirs after they pass away in a way that has many tax advantages. If you are not familiar with permanent coverage, look at whole life insurance explained.
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