The primary factors affecting Life Insurance rates are mortality (indicates the average number who will die at various ages under various circumstances) interest and expenses. Secondary factors are medical history and condition, age, sex, occupations, and avocations (hobbies). Benefits are expressed in the type of policy: Generally, Term Life, Universal Life and Whole life.

Basically, there are three types of Life Insurance Policies: Term, Universal and Whole Life. Term Life Insurance is for a term, or period of time. Term policies go from 1-30 years. You can cover yourself or family until the kids get through school, mortgage is paid, etc. Term is the least expensive of Life Insurance policies on a monthly COST basis. You can lock in a rate for whatever term you need. After the term has expired, most policies will allow you to convert to a permanent (Universal or Whole Life) policy without underwriting, at your attained (when you convert) age. Obviously, the older you are, the more it costs.

Whole Life covers you for your entire life and premiums reflect that (they're higher). Insurance companies figure you'll live to be 100. Your rate is locked in when you get it. The younger you are the better. The cool part of Whole Life is that it develops "cash values". Cash values within the policy (are like dollars) that you may use if you stop paying premiums. You can generally either take the cash out or use it to buy some continuing insurance protection. Technically speaking, these values are called "non-forfeiture benefits" this refers to benefits you do not lose (or 'forfeit") when you stop paying premiums. The amount of these benefits depends on the kind of policy you have, it's size, and how long you have owned it. A policy with cash values may also be used as collateral for a loan. Any money you owe on a policy loan would be deducted from the benefits if you were to die, or from the cash value if you were to stop paying premiums.

Universal Life is a cross between Whole Life and Term Life. It is a permanent policy that builds cash value while providing flexible life insurance coverage to meet changing needs. Essentially, the premium you pay goes toward covering the cost of the Insurance policy and the remaining premium is invested and earns interest on a tax-deferred basis. Premium payments are adjustable. It's also the middle ground in terms of premium.

Yes, everyone does. Whether people depend on you or not, the fact is Life Insurance can help create a sense of security. And, the cost is pennies for dollars. The loss of a loved one is hard enough to deal with. It's even harder when your loved one's have to pay your final expenses and burial.