Life insurance, like individual health insurance, is based on your age and health. But while health insurance is intended to pay your doctor bills if you become ill, life insurance has a wide range of purposes. Properly selected, it can not only provide for your loved ones in the event of your death, but can also increase your assets, provide a source for emergency funds, and add to your retirement in later years.
Before buying life insurance, talk with your loved ones about your goals. If all you need is temporary coverage while raising a family, a term insurance may fit the bill just fine. However, if you want something with a long term care rider, disability rider, spouse term rider, children's term riders, or conversion potential with long term savings, a term is the last thing you want. If you want cash value and life long coverage, you want a universal or whole life.
You may not know the best kind of insurance you will need when you reach your retirement years. However, it is always better to have more than you need when you are younger and be able to lower your face value later than to have the bare minimum now and find out that it is insufficient once you have retired. Buying life insurance in your 60s and 70s is not a cheap proposition.
Don't spend your life blindly thinking you can wait on life insurance. It's very frustrating to suddenly realize you need it and have company after company turn you down or offer you a price you can't afford. Start now, and let a licensed agent show you a plan tailored to fit your family.