Have you ever thought about getting online life insurance quotes? Getting a quote is now easier than ever. While shopping for insurance can be overwhelming, it is good to understand what types of life insurance are available and what the benefit of each type is. Go online for an insurance guide for new parents.

Here are a few of the more common life insurance policy types:

Term Life Insurance

Term life insurance policies are valid for a certain amount of time. The beneficiaries receive payment when the policy owner dies while the policy is still in effect. A term life insurance policy is often more affordable than a more permanent life insurance policy.

Each month the policy holder pays a premium which is based on age, health, amount of coverage and the length of policy term. A term life insurance policy does not have a cash value meaning there is no money paid to the beneficiaries unless the policy holder dies.

When choosing a term policy you can generally choose between coverage for five, ten, fifteen, twenty or thirty years. At the end of the policy you can often renew or choose to purchase a new policy. Many people will choose to not renew their policy if their life circumstances have changes (i.e. children are grown, house paid off, etc).

Permanent Life Insurance Policies

A permanent life insurance provides protection for beneficiaries after the policy holder dies. The insurance coverage lasts as long as the policy holder continues to make payments. There is no expiration date on this kind of policy. One advantage to a permanent life policy is that the policy holder can borrow money from the policy, as it has a monetary value, unlike a term life policy. Many people will borrow on their policy for education expenses, to purchase a home, medical expenses and more.

A permanent life policy is also tax deferred which offers another great benefit to the policy holder. Tax is only due on the money if or when it is withdrawn from the policy.

Types of Permanent Life Insurance Policies

Whole life insurance, universal life, variable life, survivorship life, joint life, convertible life and key man life insurance are a few of the permanent life insurance policies that can be purchased. It is best to first do your research, evaluate the needs of your family and speak with a professional that can guide you through the process.