Skip to main content
  1. Life
  2. Family & Parenting
  3. Family

Life insurance general information

See also

Life insurance is a form of insurance coverage that can provide money to your family members, business associates, or close friends in the event of your death. There are two main types of life insurance, term life and whole life. Term life insurance provides money only in the event of the insured person’s death, while whole life can provide money for other things, such as higher education expenses and retirement.

Generally speaking, term life insurance is the cheaper of the two options and is the “traditional” type of life insurance that most people think about when shopping for this type of coverage. Policies are purchased for a pre-set term and coverage amount. Usually the term or time period for the policy is set between ten and forty years. The policy will only pay out in the event of the insured’s death, and the amount paid remains the same throughout the term period.

A whole life policy is actually a combination of a term life policy and an annuity. This allows the policy to collect value over time. After paying premiums for a set number of years, the insured person can begin to collect money from the annuity portion of the policy.

Qualifying for life insurance is relatively simple. In some cases, a company will require the insured to have a medical exam in order to determine rates or eligibility. There are many policies available on the market, however, that do not require this.
Deciding what type of life insurance to buy, as well as the amount of coverage that is needed, are the two biggest decisions that anyone who has decided to buy life insurance must make. It is important to make sure that a person has enough coverage to provide care for his or her children until they are independent, as well as enough money to cover any funeral expenses.

Finally, it is important for the person purchasing life insurance to think carefully about the beneficiaries of the policy. As changes occur in his or her personal life, it is important to make changes to this beneficiary list. Removing an ex-spouse or including a new child are important changes that many people forget to make to their policies.

Advertisement

Life

  • Derek Hough
    Derek Hough brings quadruple threat talent to 'DWTS' and beyond
    Today's Buzz
  • Hookah smoking
    Young adults believe hookah smoking pose no health threat
    Camera
    7 Photos
  • Top outdoor activities
    Don't spend your summer indoors: Top outdoor activities to do with your significant other
    Camera
    10 Photos
  • Baby shower idea for men
    A new twist on baby showers is throwing a Daddy Baby-Q
    Camera
    7 Photos
  • Wedding special
    'Curvy Brides' offers a new look into every bride's pursuit for her picture perfect wedding gown
    Camera
    7 Photos
  • Morbid obesity
    Health: Morbid obesity decreases life span by up to 16 years
    Camera
    7 Photos