Life insurance is a very common concern and it is absolutely essential to protect our loved ones in the event of a severe injury or an untimely death.  However, there are many individuals who believe that such policies are only useful when they reach 50 or 60 years of age.  The fact of the matter that those who are as young as 30 should already appreciate the types of policies as well as some of the main characteristics of each.  Let's break this concept down into the two primary types of life insurance as well as some of the mechanics behind each.

Whole Life Insurance Policies
As the name of this policy already suggests, whole life insurance provides protection throughout the life of the policyholder.  One of the benefits associated with this plan is that it will also accrue cash value over the years.  A portion of this may be able to be withdrawn once one reaches his or her pension age.  This normally occurs between 12 and 15 years after the policy has first been purchased.  However, we should note that the majority of plans will require a medical evaluation and some pre-existing conditions such as heart problems may prevent the applicant from being approved.  Whole life insurance plans tend to be a bit more expensive when compared to term life policies.

Term Life Insurance Policies
Term life insurance policies are only valid for the duration of the policy (decided during the initial application process).  Time frames will generally range between five and 30 years.  Assuming that the policyholder lives beyond the expiration date, the policy can be renewed if desired.  Term life insurance policies can also be used as an addendum to a traditional whole life plan.  This is the cheapest type of plan to buy and in many cases, no prior medical history will be needed by the provider in question.  However, the main takeaway point to keep in mind is that benefits will ONLY be paid to a recipient if the client passes away while the policy is still active.  Also, there may be certain limitations in regards to the conditions that are covered.  On a final note, it could be possible to convert this basic plan into a whole life policy in the future.  This is primarily determined by the provider and naturally, the rates will rise as a result.

What is the Best for You?
This is the final question address.  You should take several factors into account.  These include:

- Your health
- The age of any children
- Your current financial status
- The monthly premiums that need to be paid
- How much money (if any) can be withdrawn and the possible stipulations
- The possibility to include this policy as part of a trust
It is critical that you take these variables into account before committing to any specific plan.  Also, be sure to speak with at least three different providers in order to determine the benefits and drawbacks of each specific policy.