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Life Insurance - Who Should Have Life Insurance And What Kind Of Policy? Life insurance doesn't benefit the person that dies; it benefits those who are the beneficiaries. There are many types and many reasons to buy life insurance but you need to consider the needs of your family and how long they will need protection. Life Insurance For The Living Do I Pay Forever? Term Life Insurance The biggest drawback is that you can keep on paying and have no value if you decide to cancel. But that is what life insurance or any type of insurance is about; risk. You insure your car and house but you don't secretly hope to have an accident or your home burn down. And whenever you sell either, you cancel the policy but don't receive a refund of the premiums. And so it is with term life insurance. It is just that; insurance against an event that may happen prematurely. And if you decide to keep it, your purpose has changed from protection against death to the provision of the proceeds to your family and loved ones. Whole Life Insurance And this cost of term life insurance compared to other types, holds true until the older ages. Then both types must be compared to see which offers the greatest advantage. Both policies offer protection but a very different cost. When you are younger, the two best reasons to buy term life insurance are that it is cheaper and gives you greater coverage. When you are older, your needs have changed. If you have become wealthy, perhaps you need to continue with the coverage to pay income taxes. If not, perhaps you will need to keep the coverage so that your spouse can buy a life annuity to provide just that, an income for life. About The Author
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