Make sure you know what you need before you try to save money on your life insurance. Life insurance isn't like shopping for a good deal. If you buy cheap life insurance that doesn't cover your needs, it won't help your beneficiaries. They are already sad because they lost a loved one, and now they are also having trouble paying their bills.
Term life insurance is the way to go if you want a less expensive option for life insurance. It's a simple insurance plan that you buy for a certain amount of time. Most of the time, the time ranges from 1 to 30 years. The only catch is that you don't get your money back if the policy ends before you do.
Permanent life insurance, which includes whole, universal, and variable policies, may cost more, but it also gives you more. Not only will these policies pay your beneficiaries when you die, but they can also be used as a way to invest. Most of these policies pay dividends, and many also let you borrow against the cash value you've built up.
With a universal life policy, you can change the amount of insurance and the amount you pay each month as your needs change. They give you more freedom. But the changes must be in line with the terms and conditions of the policy.
You can compare the difference between term and permanent policies to the difference between renting and owning a home. In the short term, it may be cheaper to rent an apartment, but when your lease is up, all you'll have left are receipts for rent and cancelled checks. When you own a home, on the other hand, you not only have a place to live, but you also build equity that you can use for many different things.
If you have a term budget right now, buy term until your money situation changes. Always keep in mind that something is better than nothing.
