Once you understand the necessity of life insurance, you need to consider what type to get. The two main types of life insurance are term life insurance, and whole life insurance.
Everyone is different
Everyone's financial situations and life insurance needs are different, and so it can't really be said that one is necessarily better than the other. To determine which is better for you personally, you can speak with the agent contacting you with a quote.
Term Life Insurance - A term life insurance policy, unlike a whole life insurance policy, builds no cash value. It provides coverage for a limited period of time, (the 'relevant term') after which the insured can either drop the policy or pay premiums that increase every few years to continue the coverage. If the insured dies within the relevant term, the death benefit will be paid in full to the beneficiary. If the relevant term has elapsed, and coverage is not continued, there will be no death benefit, nor will premiums be returned. It's important to choose a reasonable term length; one that either covers you during a time in which your death would cause undue financial harm to your loved ones, or one that covers you until a reasonable age of death. For the early part of the term, term life insurance premiums are far less than whole life insurance premiums; often as much as eight to ten times less.
Whole Life Insurance - A whole life insurance policy differs from a term life insurance policy in that it does not have a specific term. As long as you continue paying premiums, it never ends, and pays the full death benefit upon your passing. A whole life insurance policy accrues cash value over their lifetimes, and as such come with greater premium costs. The investment aspect of a whole life insurance policy gives the policyholder more options, such as loans from the policy, withdrawals, and cash surrenders. A qualified insurance agent from a reputable life insurance company can tell you more about these options.
