First of all, you need to establish why it is you need life insurance. Below are a few scenarios which might ring true for you:
You have children: Life insurance can provide your children with financial support while they are growing up if they can’t count on your income.
Leaving a legacy: Life insurance is a good way of providing your loved ones with inheritance money when you pass away.
Your home: A payout from your life insurance can allow your family to pay off the mortgage after you pass, relieving them of a heavy financial burden.
Funeral costs: A life insurance payout can help out your loved ones with the funeral costs, providing them with a lump sum.
If we boil it down, there are really only two types of life insurance policies; “term insurance” and “whole-of-life”. Below is an easy to digest breakdown of the two: