Generally life insurance is to pay either a lump sump benefit or replace your income through some form of annuity payment, for your family in case of death.

They usually break down into two groups.

“Term” which you pay premiums every year and renewal may (but depending on the plan, is not always be guaranteed to) be renewable

And “Whole Life”, which you pay much more for it but will stay in force your entire life.

Term is the way to go for almost everyone.

Term that has some kind of guaranteed renewal for the rest people.

Whole for people who need life insurance but just don’t ever get around to renewing their term policies.

It is VERY DIFFICULT to advise anyone on the topic if life insurance (or financial plans) over the internet unless you want to reveal all of your financial situation (income, debts, expenses, savings, family size, etc.)

I suggest you find a local insurance agent or financial planner who can guide you.

There are two basic types on life insurance – term and permanent (Whole life is ONE type of permanent). I find that a combination or both types really works well to allow my clients to achieve their goals – have enough money if something happens early in life as well as having enough money to do things at the end of life to pay for funeral expenses, medical bills that come at the end, as well as leaving money for spouse or other family to grieve without financial worries.

Talk to a professional.

Good Luck.

*

The “importance”of life insurance is to provide for the financial support of your spouse and other dependents, if you should die. If you don’t have any of those, or if they would not need this financial support, and you have enough money in the bank for your funeral, you don’t need life insurance.

You don’t buy life insurance for you. You buy it for those that survive you after your untimely death.

You get it so that your family does not have to sell their cars, house, etc to pay off your secured bills, medical bills, and funeral costs.