Life Insurance: What types?

There’s basically two types of life insurance: term and permanent.  I look at them like renting vs. owning.  Term insurance is designed to meet temporary needs.  It covers for a specific amount of time, and only provides the benefit if you die within the term.  It is the most affordable type of insurance and gives the most benefit for your dollar.  It’s like renting because you aren’t building any type of cash value with these policies.  They cover a large benefit for an inexpensive amount, which is why they are so attractive to young families. 

Permanent insurance is designed to provide lifetime coverage.  It’s like owning because you can build cash value with most of these policies and as long as you pay your premium, they will provide a benefit to your family.  The cash component acts like a savings: you can borrow or withdraw money from these policies in the future. 

 Which is better?  It kind of depends on your situation but typically a combination of both works well.  You should meet with a professional, such as myself, to design a plan that covers your family best within your budget.