What type of life insurance you purchase depends on what you want your life insurance to do for you. Most life insurance policies guarantee a death benefit payout upon proof of death. Policies can be simple death benefit payouts, or can include investments, savings plans, or other considerations for you. The type of coverage you elect to purchase will be heavily influenced by your lifestyle and plans for the future.
If you are looking for a straightforward policy which will guarantee funds for your beneficiary in the event of your untimely death, then a term life insurance policy might be right for you. These types of policies are an inexpensive way to cover you for a block, or term, of time. The younger and healthier you are when you purchase a term policy, the lower your rate will be. When your policy expires at the end of its term, renewal may be possible. However, the premiums for term coverage tend to increase with the age of the proposed insured. For most people, this type of coverage provides everything they want from life insurance.
If you are looking for a policy that will cover you for longer than term coverage allows for, and desire a savings plan in addition to life insurance, you might consider whole life insurance. Whole life insurance policies typically have higher premiums than term policies, but the premium does not increase with the age of the insured. Instead premiums remain constant as long as the policy is in effect.
If you are looking for flexibility in premiums and to tie your life insurance in with investments, then a universal life policy might be a consideration for you. These types of policies offer more flexibility than traditional whole life policies, but also come with disadvantages such as a possible reduction in death benefits.