There are two basic types of life insurance: term and permanent. Each should be considered carefully to determine which best fits your individual needs.
Advantages of Term
Lower cost protection in early years
Customized for coverage to last for a specific number of years
The option to exchange the policy for permanent coverage without having to show evidence of good health.
Advantages of Permanent
Lower cost in later years
Permanent protection
Level premiums
Accumulation of cash for emergencies, college education, retirement supplement
Tax-deferred wealth accumulation
Tax-Free income distribution
Flexibility
Coverage without paying premiums by using various options
Disadvantages of Term
Higher cost protection in later years
Increasing premiums
No equity or cash value savings
Failure to pay premiums ends coverage
Disadvantages of Permanent
Higher initial cost
Future dividends and current interest rates not guaranteed
