Finding the right policy may be simpler than you think. There are two basic types of life insurance: term and cash value. Cash value (or “permanent”) life insurance policies offer death benefits and some of the characteristics of an investment – a percentage of the money you spend to fund the policy goes into a savings program. Cash value policies have correspondingly higher premiums than term policies, which offer only death benefits during the policy term. Term is a great choice for many young adults because it is relatively inexpensive.2
Citations.
1 – money.usnews.com/money/personal-finance/articles/2014/07/16/do-you-have-enough-life-insurance [7/16/14]
2 – nolo.com/legal-encyclopedia/life-insurance-options-29789.html [4/22/15]