Types

• The two general types of life insurance coverage are term life and permanent plans such as whole life. Whole life policies build cash value over time while term policies do not. However, term life is usually much less expensive than permanent life.
  
  

Considerations

• One factor to consider when purchasing life insurance is the length of time for which you'll need the policy. If you just need coverage while your children are young and want to keep the cost low, term insurance might be a better option. If you want the policy to last for the rest of your life and also want to have an additional source of cash, a permanent plan may be the way to go.
  
  

Misconceptions

• Some people may purchase permanent life insurance as an investment vehicle as opposed to providing protection. However, since a portion of your premium covers the cost of the insurance and does not accumulate cash, purchasing insurance as an investment is not always a wise idea.