When a person dies without life insurance, his family can struggle to cover all of the necessary expenses. Even a basic cremation can cost thousands of dollars, with a funeral easily running into the tens of thousands. By paying a small amount each month on a life insurance policy, you ensure that your family will be taken care of in their time of grief, which they won't have to deal with financial stress on top of losing you. Let's look at the different types of life insurance policies, so that when you call for a life insurance quote, you will be better informed.

There are two types of life insurance policies: term life and permanent. Term life insurance covers you for a certain number of years, the term, and only pays a death benefit if you die during the term. Often, you can renew at the end of a term but expect the premium rates to increase. Term life insurance works well for those with limited funds or limited responsibilities.

Fox example, if your home will be paid off after a certain number of years, you might opt to purchase less coverage after that point since your financial obligations will be less. Purchasing a term life insurance policy from the same company that handles your home insurance might also save you money over time. An agent can explain this fully when you call for a life insurance quote.

Permanent life insurance covers a long-term need for life insurance and often has positive tax implications. With permanent life insurance, you also can borrow against the accumulated value and withdraw funds, under certain circumstances. Keep in mind, though, that doing so might reduce your death benefit. An agent can walk you through the finer details during the insurance quote process. There are no time terms or restrictions associated with this type of life insurance, and it can often be combined with home insurance for lower rates on both.

Once you decide what kind of life insurance you need, you then must determine how much. While an agent can discuss this with you during the insurance quote process, this is a personal decision based on your financial and life situations. You will want to factor your marital status, current and project income, dependents and asset value into your decision.

An agent will tell you, though, that the common practice is to select a benefit that equals five to 10 times your current income, but that number should be adjusted depending on your life situation. If you are single and have no children, you might just want a life insurance benefit that covers any expenses relating to your death. Life insurance is an ongoing expense, so consider your other obligations – mortgage, home insurance, auto payment and insurance, etc. – when doing the math.

No matter what type of insurance and level of benefit you decide on, know that you are protecting loved ones you leave behind. With that in mind, call your agent and get a life insurance quote, today.