Buy Term Life Insurance
There are various reasons for one buying term life insurance. Some may not be able to afford permanent life insurance or feel they don't need it just yet. You can buy term life insurance in various intervals including 5, 10, 20 and 30 years. Others may get the policy to cover short-term goals, such as paying off a loan or having backup for a young family - then once the children are old enough and out of the house, the policy is no longer needed. The policy can be renewed at the end of the term.
Choosing Term Life Insurance
Most term life insurance policies are offered to individuals that are between 18 and 85 - some offer it up to the age of 95. With term life insurance, you are given adjustable premium rates, which mean they can rise and fall throughout the life of the policy. The premium rates are subject to change based on the projected changes in investment earnings, persistency, expenses and mortality experience - this is outlined in the policy. There is a maximum that the rates can be raised, so that the insured isn't abused.
When renewing the policy after the term, the premium increases each year - if you decide to keep the same policy. The policyholder can also transfer their term life insurance to whole life insurance (or permanent life insurance) with the same company.
If you decide to get a term level life insurance policy, this means that your premiums won't rise at all during the policy. There is no cash accumulation with the term life insurance plan, which allows it to be cheaper than whole life insurance.
Look into the different plans to see which term would best suit your lifestyle and household.