Life insurance should be an essential part of any financial plan. Its primary purpose is to provide your loved ones with the protection needed to ease the financial burden of death. In this capacity, the proceeds can be used to help meet your children's college expenses, help ensure a comfortable retirement for a surviving spouse, or assist with the payment of any outstanding debts. In addition to providing the necessary death protection, some policies offer income-tax deferred cash value accumulation, providing a possible income source for future needs.

Permanent vs. Term
The two basic types of life insurance are permanent and term. The main differences between the two types are the length of time for which coverage is provided, and whether the policy offers a cash value - the amount of money available if you terminate the policy before its maturity or before your death. Term life insurance is generally the least expensive type you can buy and is suitable for coverage for a specific purpose- such as family income protection until the children are grown. Permanent, also called whole life or universal life insurance, is generally chosen as a strategy to provide protection over one’s lifetime and can also provide significant investment and income opportunities.

While the annual cost of insurance is important, it should not be the only consideration in determining which type of policy is right for you. For example, will you need additional insurance at some point in the future? If you think you might then term insurance may not be the right choice since the cost of insuring in later years can be very high and, depending on health, may not be available at all.

The best way to ensure that you are properly advised about which product to buy is by talking to a licensed insurance agent. These individuals often can quote rates from several different insurers and give you a detailed comparative analysis of the costs and benefits. A licensed agent can even provide low cost term insurance at the same rates as those advertised on the web while providing you with advice and personal attention, now and in the future.