Choosing a life insurance plan is no easy task as the type of coverage that’s right for you depends on your unique circumstances and financial goals.

There are several kinds of life insurance, however they can be categorized into two types: term and permanent (whole) life insurance.

Term life insurance is designed to meet your temporary needs.  It provides protection for a specific period of time (“the term”) and generally pays a benefit only if you pass away during the term.  This type of insurance is commonly selected when you are in need of coverage for a specific amount of time.  For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid in full, such as your mortgage.

In contrast, permanent (whole)life insurance provides lifelong protection.  As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid at the time of death.  Because it is designed to last a lifetime, permanent insurance accumulates cash value and is priced for you to keep over a long period of time.

The best way to decide the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional for a life insurance needs analysis.