Get life insurance that fits your needs, and budget

Many people don't know this, but there are actually three types of life insurance out there: Term Life Insurance, Permanent Life Insurance and Final Expense Insurance.

Term life insurance

Just as you'd guess, Term Life Insurance is only active for a specific term. Standard terms are 10, 15, 20 and 30 years. After the term ends, so does the policy.

Because these policies do expire, they are the most affordable option. The strategy behind this kind of life insurance is that you would have it during the period time when you make the least amount of income (in your 20s and 30s when you're just starting out in your career). Then, when your policy ends, you would hopefully be making a much higher income, have more money in the bank and thus be able to afford any costs yourself.

Permanent life insurance

This type of life insurance is more expensive, but that's because it's for life. As long as you continue to pay for it, you'll be covered. It's also a way to guarantee you'll have an inheritance to pass onto your dependents.

Final expense insurance

If you're more interested in just having enough coverage as to avoid putting your family in a tight spot financially after you're gone, that's exactly what Final Expense Insurance is all about. The cost is quite low (starting at $10/month) because it only covers end-of-life expenses like a funeral, medical bills and debts that need to be settled. You can opt-in to a life or term policy for this type of insurance as well.

Life insurance may not be something you think you need, that is until you really need it or it's too late.