There are many options available when choosing life insurance, but the main two are Term Life Insurance and Permanent Life Insurance. Life insurance is important for anyone with loved ones they want to protect in the case of their death; especially for those who have dependents they would like to continue to provide for in the case of their early passing. When getting life insurance there are many clauses and requirements, usually including a medical exam. This may sound complicated but a good life insurance agent can make it very simple and explain all the necessary parts.

Term life insurance is generally one of the most cost effective options, while still maintaining an adequate level of protection for the policyholder, their family or their business. This form of life insurance can be bought in 10 – 30 year installments. Normally written into the original contract is a clause that says the policyholder can extend their life insurance at the end of the term, no matter their physical state at the time. Renewal rates are also written into the contract, so not matter if the policyholder suffers from a life—threatening illness or heart attack, the insurer will not be able to increase the rate.

Permanent Life Insurance covers the lifetime of the policyholder; there are no renewals needed. An advantage of permanent life insurance is that the policyholder can take out a loan against the cash value of the policy. These loans are notoriously low interest and can be paid back in a lump sum or in smaller installments over time. There are two main types of permanent life insurance: universal life insurance and whole life insurance. Universal Life Insurance combines life insurance and an investment component that is tax deferred. Part of the premiums paid, go towards paying the insurance and the other part goes into an investment fund. There are many options associated with a tax-deferred investment fund; an insurance agent can outline all the options. Whole Life Insurance is not only life insurance; it also incorporates a savings component. There are two options with whole life insurance, participating and non-participating. Participating policyholders will receive dividends from the insurance provider and non-participating clients will have a guaranteed future cash value.

Life insurance is a great option for everyone, but with so many choices getting the right option for you can be tough. Looking into all the available choices before contacting an insurance agent is a good idea; make sure you already have some of the facts. One of the great things about having so many options for life insurance is that anyone can find the right policy to suit them.