Life insurance is money for your family to use to pay your bills and death expenses when you die. A person must be healthy to purchase a life insurance policy. The amount of life insurance needed depends on the person’s family’s needs when they die. Some things to consider when purchasing a life insurance policy are, marital status, number of dependents, (wife, kids etc.) family size, income, and wealth. Life insurance has different types of policies.
Term life insurance or term assurance is life insurance that provides coverage for some sum of money during given period of time. After the term stated in original contract will expire – the sum of money paid to insurance company need to be renegotiated and will often increase. Term insurance is the cheapest way of buying live insurance.
Term life insurance is the original form of life insurance and is different to permanent insurance because its rates wont go up, and there is fixed term contract which will end in future. Permanent life insurances contract can be until death of insured person but the rates will slowly go up every some period of time.