If you have a family to support or if a loved one would suffer if your income suddenly disappeared after your untimely death, you should consider life insurance.


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If you’re mostly debt-free and have no dependents or a significant other, you may not need life insurance yet.

Before starting a policy, it’s important to understand the two main types of insurance policies so you can choose the appropriate type for your needs.

Term life: the least expensive type of life insurance policy, it protects your dependents if you die within the term of your policy. Term policies cover you for a specific period of time, generally 20 to 30 years, after which the policy is no longer effective. Most term life policies will allow you to convert the policy to a whole life policy before the policy expires if you want to.

Whole life: every time you pay a premium for a whole life insurance, a portion of the payment is invested for you through a whole life insurance policy. You can use the cash value you build up to purchase additional insurance or you can borrow against your policy or pull money out as needed for emergencies, during retirement, or to put toward your child’s college education.

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