To many, the concept of life insurance is so daunting that the purchase of it is delayed time and again. To others, life insurance has become distasteful because of all of those late-night commercials pitching cheap policies at older segments of our population.

The reality is that, while life insurance may not be a top priority when you're young and healthy, anyone can die at any time, because of illness or an accident, and life insurance offers extra security to the people you may be leaving behind. In some cases, it can also be a financial rescue plan for you, since some life insurance policies can be cashed out.

What is Life Insurance?
Simply put, life insurance a benefit that is paid to a designated recipient, upon the death of the insured, and it is paid for in the form of monthly premiums, much like medical insurance. The benefit may be paid out either as a lump sum or in the form of an annuity fund, and the policy may pay based on death by illness, natural causes, or accident.

Different Types of Life Insurance.

There are two basic types of life insurance:

• Term life insurance is, just as it sounds, a temporary form of life insurance that is only in force for a specified period of time, or term. Generally speaking, it's designed for people whose lives are in flux, but who are not in imminent danger of dying.
• Whole life insurance is a more permanent form of insurance, with payment plans that are fairly customizable. Whole life insurance is often purchased for babies, who are then able to cash out the value when they mature, and need to pay for college, but it is also a way for spouses to guarantee income for their surviving family members.

Which is right for me?
The best way to determine which kind of life insurance is right for you is to sit down with your insurance agent or financial planner and discuss your situation. Factors taken into account will be your age, marital status, and general health, as well as whether or not you have a retirement or pension plan in place.