Which is the best insurance policy for
you?
There are number of different types of Life Insurance policies.
The purpose of this article is to familiarize you with the
most common ones. Your agent can help you determine which
type of life insurance is appropriate for your current and
future needs. The rule of thumb is that if you are young
and single and have no one else depending on your income,
then you probably don't need it.
If you are married without children and both of you are
working, then you probably need only a limited amount to
cover expenses associated with your untimely death. But if
there are family members who depend upon your income, then
life insurance will be a very important component of your
financial planning needs. 
Why term life is better for most people
Simplicity
Planning financial goals around a cash value insurance plan can get really
complicated. There are non-trivial rules governing things like the size of
your cash value savings versus the policy death benefit, and the repayment
of policy loans. Term life, on the other hand, is the essence of simplicity
-- pay the premium, get covered for the term.
Competitive pricing
Because they are so simple, term life policies can be easily compared on the
basis of price. This has led to a very competitive market in which term life
policies are rapidly becoming a commodity.
Flexibility
Many term life policies are both "renewable" and "convertible." The
former insures that you can re-up for another term policy without a medical
exam. The latter allows you to convert your term life policy into an equivalent
cash value policy from the same carrier, should this make sense during the
term of the policy.
Not all term life policies offer these features, however,
so be sure to ask for them specifically if you want them.
(In particular, be sure you know what they mean by "renewable.")
On the other hand, cash value policies only work out well
when they are held for life. Once you're in, it's tough to
get out without a little financial pain.
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