Whole and term life insurance policies are quite different so before you choose which one you will have, some research is needed to ensure you get the correct one for your needs.

Most people want to get the most coverage in life insurance for the least cost. For the best low cost life insurance many people choose term life insurance which will usually have the lowest premiums for the best cover. Term life insurance lasts for a specified term, while whole life insurance lasts for the whole length of your life. It is more expensive than term life insurance. But term life insurance does not accumulate value.

The goal of life insurance is to protect your assets such as your house, should anything happen to you. For this reason most people do not see the need to take out life insurance before they have a home and family.

But when you are young and healthy is actually the best time to take out life insurance because the premiums are lowest at that stage of life and can be locked in for quite a long time, giving you cheaper life insurance afterwards, when you do have more financial responsibility. Some term life insurance policies can be converted at a later date to whole life insurance. This will ensure that the person cannot become uninsurable due to any health problems at a later date.

Many people take out a long term life insurance policy when they could get a better rate by using a shorter term. If you are close to retirement, you may not need a 30 year life insurance term. And if, for instance you are trying to quit smoking, taking out a 10 year term will be cheaper. Then after you have quit you will be eligible for lower premiums for a non-smoker when you renew.

Some whole life or permanent life insurance policies offer dividends. These can be taken as a cash payment or used to reduce the premiums you have to pay. Or they can be left to accrue interest or even used to pay for additional cover.

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