True Blue Life Insurance

2018 Life Insurance Buyers Guide:

Understanding The Different Types Of Life Insurance

Last updated: April 18, 2018 at 3:07 am

1. Overview

smiling life insurance familyWhile there are different types of life insurance, in many cases, life insurance of any type seeks the same goal: income replacement. Wage earners who want to buy life insurance so they can provide a financial safety net to family members in the event of their early death are making a wise decision.

However, purchasing life insurance isn’t as straightforward as buying auto or home insurance. Not only must consumers choose what level of coverage, but also what type of insurance is best for their needs.

Below is a guide to two main types of life insurance, permanent life insurance and term life insurance, to help consumers make that decision.

Regardless of the type of life insurance you purchase, all types leave a death benefit to family members based on the amount of coverage selected. Some choose to buy life insurance to provide their family with enough money to continue their same lifestyle, others leave money specifically for funeral expenses and/or to pay off remaining debt, while others choose to include money for their children’s college education.

For those without children, some leave money to supplement retirement savings for their remaining spouse or perhaps leave money to their favorite charity. The coverage levels and the reasons people buy life insurance are as varied as the people who buy it—the variations are endless.

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2. What Is Term Life Insurance?