If the main reason you want life insurance is to protect your family from debt and provide cash  to cover your income in the event of your death, then term life insurance is for you. It is commonly called “pure insurance protection,” because it doesn’t have a cash value feature like permanent or universal life insurance. Another difference between permanent life insurance and term life insurance is that term life insurance is set to expire at a certain time --  either after a set number of years, or when you reach a certain age.  Even with these limitations, term life insurance is the simplest and most cost effective way to buy most amount of total coverage.

Requirements for term life insurance
Like with many types of insurance, a medical exam may be required when applying for a term life insurance policy. The exam will cover your height, weight, medical history, and include a blood and urine test—which are taken to look for specific medical problems. The results of the tests may hinder you from getting approved for the insurance, or increase your rates, depending on the outcome.

If you’re a smoker, you will pay more for life insurance no matter what type you choose. No matter what you smoke, if it’s cigarettes, cigars or marijuana, you must attest to that on your policy application.

Insurance premiums increase as you age, but with some term life insurance policies, you may be able to renew your policy at the end of the term without having to take another medical exam. Also, if you would like your insurance premium locked in at a certain rate, you can request a “level premium” policy. Your premium rates will only increase after your term expires.  This is a great way to 'lock in' a set amount of coverage for 5, 10, 15, 20 or 30 years and not have to worry about increases in your premium payments.

Guaranteed issue term life insurance coverage (also known as “quick issue” or “simplified issues”) are really nice if you're having difficulty finding life insurance due to a pre-existing medical condition or illness. A higher premium is paid, because no medical exam is required.  Basically the insurance company is taking a big risk in insuring you without a medical screening. Also note that some guaranteed life insurance coverage may require a waiting period before coverage takes effect.  There's also a chance that extra yearly fees may also apply.

How much coverage do you need?
There are a wide range of factors that should be considered when deciding what kind of coverage to get. How much short-term debt, long-term debt, mortgage balances, outstanding loans and any other financial obligations need to be taken into account when deciding how much coverage is needed.

Policy maintenance
After you purchase a term life insurance policy, be sure to give it a yearly check-up. Keep your eyes open for the same kinds of products and services at other life insurance companies, because not all companies charge the same amounts. This is also a great reason to use independent insurance brokers and websites as they can give you the widest range of options.  And always be sure to read and understand everything in the policy before signing it as there may be clauses or fine print that adds hidden-fees.

Another thing to consider as time goes by is how much life insurance you still need. The general rule is to get the most coverage while you're young and have the most obligations and liabilities for the longest term.  As you get older and you have fewer obligations and liabilities, your coverage may not need to be so high.  For example, if you purchased life insurance when your children were considered dependents, and now they are grown with families of their own, you might consider saving yourself a lot of money by reconsidering the amount of coverage you need. Scaling back your coverage can help save you lots of money.

Determining what’s best
While term life insurance may be good for some, for those who want to build interest and cash value, a type of insurance called variable universal life insurance is available. The perk of variable universal life insurance is that you can change your death benefit and premium payments over time. But there are usually more negatives than positives to this type of life insurance.  The economy dictates what kind of interest you accrue, because you invest your cash value in stocks, bonds and mutual funds.

It should be noted that variable universal life insurance and cash values are not like typical investments or savings accounts. If you take out money from it, or put a loan against it, you’re subject to your death benefit decreasing as well as the possibility of getting a tax bill if you exceed the amount of premium paid. Also, as time wears on, more and more of your premium goes to pay for the cost of insuring you.

If you are interested in getting life insurance quotes, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers – helping you find the best rates for term or variable universal life insurance, while keeping your family and pocketbook in mind.