Life insurance is designed to provide for your loved ones in the event of your death. Term life insurance is generally cheaper than whole life insurance, but will only pay a death benefit if you die within the term of the policy. Term life policies differ in premiums, coverage, length and renewability.
Determine how long you will need term life insurance. If your last child will be finished with college in five years, and you and your spouse have enough saved for retirement, you may only need five years of term life insurance. However, if you are in your 20’s and have a newborn and a 2-year-old, and you are the primary source of income for your family, you may need a term of a significantly longer time.