Types

• There are many types of life insurance. But, the common types of long-term insurance are the 30-year term life insurance and all permanent insurance products. A 30-year term policy provides basic death benefit protection for 30 years. After 30 years, you lose your insurance policy because the term is over. A permanent policy is life insurance that extends for your entire life.
  
  

Significance

• Term-life insurance provides death benefit protection at a relatively low cost compared to the premium you pay. Permanent life insurance provides insurance protection, but with a higher premium than term insurance. Term life is designed to protect you temporarily, though the policy itself does last for a long period of time if it is a 30-year term policy. Permanent insurance reduces the amount of insurance you purchase over time by building a cash reserve that accumulates against the death benefit, thereby replacing it. This is how the insurer can afford to provide insurance in your advanced age.
  
  

Benefit

• The benefit of having long-term life insurance is that you're able to cover your financial liabilities over the span of your entire life. For example, if you take out a loan to purchase an automobile, it's a good idea to have enough life insurance to cover the cost of that automobile. But when you pay off the loan, you don't need the insurance anymore. But wait. What happens when you take out a loan for a second car or you need to replace your car or you take out a loan for something unrelated? The original policy you purchased provides money to pay off this new debt if you die prior to satisfying the loan.
  
  

Consideration

• When buying life insurance, it's generally a good idea to buy the longest term policy you can afford. This allows you to take on significant debts and not worry about whether you're able to pay off those debts before you pass away. Your family will be protected and you won't ruin them financially.