What’s the best type of life insurance for me?

June 21, 2021 Kennedy Olson

First, consider the different types and what makes them different

Term life: If you’re looking to provide financial protection for those relying on your income until your children are grown or until you retire, then term life insurance may be the right option for you. You can choose the term length of your coverage from five to 30 years. Once that term has ended, your coverage expires—unless you renew it prior to that date.

Final expense: If you simply need protection to cover the costs of burial expenses, then a final expense policy may be a good choice.

Permanent life: If you want a policy that lasts your entire lifetime—or offers the option to withdraw funds (if needed) from your policy while you’re alive, you may want to consider whole life insurance. This may also be the best option for you if you want to leave an inheritance, as coverage lasts your entire lifetime.

How long will your loved ones need coverage?

If you’re already starting to determine “how long,” then term life may be best for you. It offers more affordable premiums (for similar dollar amounts).

Consider these questions:

Do you have a spouse, partner, or other family member that relies on your income for financial support? How many years would they still need your salary to maintain their lifestyle?
Do you have sufficient retirement funds that could assist them for years to come?
Do you have younger children that require child care or have other educational needs? If so, do you have a plan—or do they—to attend college? For how long? Public or private institutions? When will that start?
Do you have a mortgage and when will that end?

What is the Best Life Insurance Policy for Me? Progressive. (n.d.). https://www.progressive.com/answers/best-life-insurance-for-me/.