Understanding What May Be Best

Your own, specific situation is the biggest factor in determining what type of insurance you may need. If there is no one that is dependent upon you, or you do not make a significant contribution to the family income, then you may not need life insurance. You should consider, however, those you may want to have taken care of after you pass.

If you make a significant amount of money compared to the rest of the family, then applying for life insurance will be integral to having your family taken care of.

Term Life Insurance

A debate between whether term life insurance is better than whole life insurance has been ensuing for years, and many pro‐term life say that since those younger than the age of 40 are better served, as they are offered a death benefit, but do not receive any cash value.

Whole Life Insurance

As the most traditional insurance policy, its premiums are fixed and remain the same even after your passing, until all of the premiums have been paid. Whole life is more inclusive in that it offers cash value as well as death benefits; however the policy is more expensive. But if you have a whole life policy for 25 years, it will be much more beneficial than if you were to have a term life insurance policy for the same period of time.

Variable Life Insurance

While quite expensive, variable life insurance policies help you to build up a reserve for cash that you may put into anything that the insurance company offers. Your reserve's value is determined by the health of your investments in the stock market, you never know if you will lost or gain, so first consult a professional before purchasing this type of insurance.

Universal Life Insurance

This type of policy is a combination of both term life insurance and the whole life insurance. The cost of your premium can be altered by using a portion of accumulated earnings in order to cover a part of that premium. This is also true for death benefits; however, you will pay higher fees for administration. This policy is typically less expensive than whole life insurance, but more costly than term life insurance.

Pricing
The amount that you will pay varies depending on the situation. A 30-year old man of good health may pay around $300 annually for a $300,000 term life policy; under a cash value policy, it would be approximately $3,000.