The best life insurance to have is the kind that is in force when you die. But since most of us live a long time, some thought should go into the type of contract we choose.

  1. Determine how long you want your life insurance coverage to be in effect – for example, from now until your children finish college, or throughout your life.
  2. Buy a term (fixed-length) contract with an increasing premium (annually renewable term, or ART) if that length of time is less than four years.
  3. Buy a term contract with a level premium if you need coverage for a longer time (5, 10, 15 or 20 years).
  4. Buy a permanent (lifelong) contract if you wish to provide a death benefit for your beneficiary no matter how long you live.

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