What types of Life insurance are there?
Think of it as renting - The premium is only paid for a period of time (term) and if you stop paying premiums NO Claim will be paid.
This type of insurance is great for younger families with limited resources that need to cover a large need such as a college fund until the kids are gone.
Over 95% of all term plans never pay a claim because the premiums rise at each renewal and eventually are dropped becuase of that rising cost.
Whole Life Insurance
Just like it's name implies - it is designed to last your whole life.
The premium is level for life guaranteed in the contract. This actually makes it less of a burden to pay the premium as your income rises over the years.
There are some limited pay plans - Single Premium, 20-Pay Life, LIfe Paid up at 65
The limited pay plans guarantee that no future premiums will be paid once that limit premium stream is paid and the policy will stay in force for your lifetime.
Everyone should own enough Whole life insurance to cover the cost of a basic Automobile. This is becuase each time you purchase a car you can tell the salesman you don't need life insurance it is taken care of and when you eventually reach your end that same policy will be there to pay the cost of your final expenses (funeral, etc.)
Universal Life Insurance
Potentially the mose dangerouse life insurance to own.
Variable Universal Life should be avoided at any cost. The guarantees are tied to the stock market. Never put the greatest financial tool developed by man (life insurance) where it can be put at risk overnight by unforseen changes in the economy.
Regular Universal Life is OK if purchase after 2000 AND the guarantee period is set for ages past 95. Don't purchase based upon an illustration with current values illustrated more than 6% those larger interest rates are not realistic in any way.
There are some great plans on the market today but again be sure the illustrated interest rates are not unreal and the plan is guaranteed to an age of 95 or older. If you do not you may be purchasing a plan that will blow up before it is needed for it's intended purpose.
No matter the plan you purchase - look into plans that pay claims for catastrophic events or chonic illnesses not just death.