Term life insurance
Term insurance covers you for a set period, such as 10 or 20 years. It can fit temporary needs like replacing income while your kids grow up or covering a mortgage. Initial premiums are generally lower than permanent insurance premiums. Renewal premiums can rise. Check when coverage ends and whether you can renew or convert.
Permanent life insurance
Permanent insurance can cover you for life if you meet the policy conditions. Some policies build cash value. Premiums are generally higher at the start than term insurance. Ask how premiums, cash values, withdrawals or loans may affect your policy.
How much coverage might you need?
Add up the income your family would need to replace, the debts you want paid off and future expenses such as education. Subtract savings set aside for those needs and life insurance you expect to keep. Include the cost of replacing unpaid caregiving. Start with the guide’s worked example.