Life Insurance

Term insurance covers you for a set number of years at a substantially lower cost. It builds no cash value, and when the term ends the coverage ends — renewal at that point is priced at your new age. It suits a defined, temporary obligation: the years until a mortgage is paid off, or until children are financially independent.

Permanent insurance lasts for life and includes a cash value component that accumulates over time. Whole life offers guaranteed growth managed by the insurer, which makes it simpler but more expensive. Universal life is more flexible — you can adjust premiums and choose investments — but you carry the investment risk and it needs active management.

The useful question is not "how much life insurance should someone have," but "what specific obligations would need to be settled, and what ongoing income would need replacing?"

Naming beneficiaries directly on the policy means the benefit bypasses your estate — it pays out faster and avoids probate fees. Leaving the beneficiary designation blank or naming the estate loses both advantages.

Convertibility is worth asking about while you are healthy. A convertible term policy can be changed to permanent coverage later without a new medical assessment, which protects your ability to get coverage if your health changes.