by Edwin Ivanauskas | Tags: Personal Finance, Insurance

There comes a time in our lives where we decide if we should have life insurance on ourselves to protect our loved ones. We don't want them left with our bills and our funeral costs which run an average of six thousand dollars and higher. Life insurance is a necessity that we should all have. There are several types of insurance to choose from and you should choose carefully, because this will affect those closest to you.

Most employers offer some type of life insurance to their employee's but if you should leave that company, that life insurance is no longer there to protect you and your family.

If you have life insurance through your employer, you may still want to carry a separate policy to protect yourself just in case the "what if" ever happens.

Choosing your type of life insurance can be difficult. You need to decide what your main goal is. Is it to cover all your funeral expenses and to leave a little to your family to spend as they wish, or is it to make sure that your house is paid for along with other expenses, such as school and vehicles etc.?

The two main types of insurance are whole life and term life insurance.

Term life insurance is a basic insurance plan that will cost you less and take care of your funeral expenses and a little for your family. It is set for a certain term of time and as long as you pay for it for the length you agreed to, then your family is covered if something happens to you during this period. When the term life insurance is up, then you will have to renew your policy. Your premium may go up in price and what you are offered based on your health and age may change. The cost is less for this insurance and it is a good short term policy but remember that it may not have been the best choice in the long run if you get sick and as you get older.

Whole life insurance is insurance that will last for the length of your life as long as you pay your premiums. You may find the cost is much higher with this but the benefits tend to put it in your favor. As long as you are paying your premiums the price will stay the same. With whole life insurance you will not only have money to pay for your funeral but your beneficiaries will be taken care of as well. Your policy can include paying off your mortgage and sending your children to school. This is vital if you are the head of household. With whole life insurance you can also take a loan out while you are still living to pay for things that you need.

A good life insurance agent can help you find the best policy to help you take care of your family. Always read the clauses and check for exclusions such as suicide etc. This can save your family confusion in the long run. Make sure that once you have your life insurance chosen, that you discuss it with your family. They should know what to expect, and where your papers are at in case they are needed. Life insurance isn't just about death, it's about comfort in knowing your loved ones will be taken care of.

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