Term Life Insurance
Term life insurance gives you protection for a predetermined period. For example, a 20-year term life policy locks in your premiums and coverage amounts for the entire 20-year term of the policy. After that, unless you cancel, the policy renews annually with new rates.
Permanent Life Insurance
Permanent life insurance gives you coverage for your whole life, not just a time. It differs from the term because it typically accumulates cash value, and premiums usually don’t increase as your health and age change.
Buy it Early
The basis of life insurance rates is in part on age and health, so the younger and healthier you are, the less you’ll typically pay for coverage.
Determining Amount of Coverage
While it sounds nice to have a $1 million life insurance policy, you may not need that much coverage. One way to determine how much is enough is to consider future costs for things that are a priority, such as child care, paying off your mortgage, and settling any outstanding debts/loans.