If you have decided to go for term life insurance, keep in mind that:

• Term life insurance matches the life period of your need for the policy.
• “Small budget, big money” should be your motto since this policy pays only if you die within the active term of the policy. Coverage will stop if you are still alive at the end of the term, with no cash value on hand.
• You are young and life is at your feet for fun. Go for a “convertible” term life policy now since the premiums will be low. Later on, it can be changed to permanent life insurance policy without any medical exam with higher premiums.

In addition, in case there is a possibility of your financial needs changing, it is advisable to go for a “convertible” term policy. Keep in mind that premiums for term life insurance may start at a lower rate but will go higher as you grow older.

If you are considering a permanent life insurance, you should know that:

• Permanent life insurance premiums will be higher but stable even as you grow old.
• The policy will pay a death benefit to you or your surviving beneficiary at anytime you die.
• The money that is adds up at the end of the term of the policy serves to become an alternative income or “cash value” for the beneficiary.
• Taxes or after death expenses can be paid with the benefit received.