Types of life insurance policies

Whole life



Universal life


Variable life


Term life

A term policy is straight insurance with no investment component. You're buying life coverage that lasts for a set period of time provided you pay the monthly premium. Annual-renewable term is purchased year-by-year, although you don't have to requalify by showing evidence of good health each year.

When you're young, premiums for annual-renewable term insurance are dirt cheap -- as low as a few hundred dollars per year for $250,000 worth of coverage.

As you get older, premiums steadily increase. Level-premium term has somewhat higher -- but fixed -- premiums for longer periods, anywhere from five to 30 years.

Getting started

Getting a job

Buying a car

Starting to invest

Buying a home

Starting a family

Retirement planning


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