Term Life insurance is the simplest type of coverage. It provides the maximum amount of coverage at the lowest possible cost. You can purchase protection for varying lengths of time. Policy terms range from 1 year to lifetime protection (known as 'Term To 100').
The term you choose will depend on the amount of time you feel the coverage is required. The face value of the policy is paid to your beneficiaries on a tax-free basis if the insured person dies while the coverage is in force.
Whole Life insurance covers your entire lifetime. The premiums are usually guaranteed and are fixed for the life of the contract. You may choose to pay for your coverage in a shorter time period i.e., ten or twenty years, at which time your premiums stop but your coverage remains in force for life.
Whole life policies generally pay dividends and accumulate future cash values.
A mortgage is usually the single largest debt most people owe. In the event of a premature death of one spouse a mortgage life insurance policy will provide the surviving spouse with the necessary funds to pay the remaining mortgage balance.