Term life insurance is the most basic kind of insurance, and also the most affordable way to protect your family’s financial security if something happens to you. It's also the easiest to understand. It comes in fixed lengths of time, or terms, of 5, 10, 15, 20, or even 30 years during which the company offers level premiums that are guaranteed not to increase. As long as you pay your premiums on time, the company cannot cancel you. If your term reaches its end, you can choose to start a new policy or continue the current policy with rates that reflect your current health, age and lifestyle. Individuals in their 30’s and 40’s in excellent health could buy $100,000 of Term Life Insurance for under $1 a day.

WHOLE LIFE

Permanent life insurance provides protection for beneficiaries after the policy holder dies. Since protection lasts as long as the individual is making a payment, the policy holder should not be concerned about the policy expiring or ending at a specified period of time like term insurance. This type of policy offers the most security for your beneficiaries. Many of the permanent life insurance policies also feature an investment option. Policy holders may withdraw money invested in the policy for various reasons, such as college education or for other unforeseen expenses.