what is life insurance 
understanding how life insurance works and how to shop for a policy can help you find the best coverage to meet your family s needs life insurance is a contract between an insurance company and a policy owner in which the insurer guarantees to pay a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums the policyholder pays during their lifetime the best life insurance companies have good financial strength a low number of customer complaints high customer satisfaction several policy types available optional riders and easy application processes investopedia theresa chiechitypes of life insurancemany different types of life insurance are available to meet all sorts of consumer needs and preferences depending on the short or long term needs of the person to be insured or their family members the choice of whether to select temporary or permanent life insurance will be a major consideration term life insurance is designed to last a certain number of years then end you choose the term when you take out the policy common terms are 10 20 or 30 years the best term life insurance policies balance affordability with long term financial strength 1many term life insurance policies allow you to renew the contract on an annual basis once the original term ends however since the renewal premiums are based on your current age the cost can rise steeply each year a better solution for permanent coverage is to convert your term life insurance policy into a permanent policy this is not an option on all term life policies so look for a convertible term policy if this is important to you permanent life insurance is more expensive than term but it stays in force throughout the insured s entire life unless the policyholder stops paying the premiums or surrenders the policy some policies allow for automatic premium loans when a premium payment is overdue 2top rated companies to compare