Finding the right life insurance policy takes a close evaluation of one’s needs and individual set of circumstances. Life insurance can be categorized broadly as either temporary or permanent. Term life insurance is most commonly used to fill a temporary need for security in scenarios such as borrowing money for a mortgage, business loan or until the kids have become independent. Permanent policies such as whole life, variable life and universal life (and its variants; indexed universal and variable universal) are considered to serve a person continuously until their death benefit is realized. These policies can build cash value and provide significant tax saving as well. A licensed independent insurance can explain your options and provide answers to the questions you are concerned with.
A good way to gauge how much coverage you need is by using the D-I-M-E method. Calculate your Debt, Income, Mortgage and childs Education expenses. There are also life insurance calculators available to help you determine your needs.