The ultimate reason for buying life insurance is for paying a benefit (i.e. a dollar amount) to a beneficiary when you die. It can also help you save money. Life insurance policies take one of several basic types. This article summarizes each type and some of the benefits it offers to your situation. Life insurance is priced by the insurance companies based on your age and health. Life insurance companies expect you to live statistically so many years more at a given age and health status and gear their costs accordingly. Because of this, your acceptance by the insurance company depends on how the condition of your health fits into their costing scheme.
Some level premium term policies contain a guarantee of level premiums, while others don't. Without a guarantee, the insurance company can surprise you by raising your premiums (the amount you must pay to keep the policy in force), even during the time you expected your premiums to remain level. Make sure you understand the terms of your policy.
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