Life insurance can help people who depend on your income or care. The first question is what financial need you want the policy to address and for how long.
How the two broad types work
Term life insurance provides coverage for a set period if premiums are paid and the policy remains in force. It generally focuses on a death benefit without building cash value. If the term ends, coverage may stop or renewal may cost more, depending on the contract.
Permanent life insurance is designed to remain in force longer if its requirements are met. Many policies include a cash-value feature, but premiums, fees, guarantees, and flexibility vary widely. Taking loans or withdrawals from a policy may reduce its death benefit or create other consequences.
Questions to ask before buying
Estimate the years and amount of support your household would need. Compare the guaranteed premium and death benefit, not just an illustration. Ask what happens if you stop paying, what can change, and whether the company can explain every charge. Name beneficiaries and review them after major life events.
Do not replace an existing policy until you understand what you could lose, including guarantees or coverage based on your current health. Read the policy and talk with a licensed professional about your needs.
Further reading: NAIC life insurance consumer guide and NAIC life insurance overview.
This is general educational information for U.S. readers. Product terms and state rules vary. Check current documents and ask a qualified professional when you need personal advice.