May financial experts consider life insurance to be a key aspect of sound financial planning. In the event of the insured's untimely death, life insurance can provide financial security for those left behind, whether it is a spouse, parent, child, or anyone that depended financially on the insured.

Why get life insurance?
There are many reasons people get life insurance policies, including:

Financial security for dependants/beneficiaries
In the event of the death of a head of the household or breadwinner, without a life insurance policy, the family and those that depended on the income are left with not only medical and funeral expenses, but the expenses of day to day living. Because a death in the family is difficult enough to deal with without adding financial struggles with it, a life insurance policy can keep the family members afloat financially until they are able to get on their feet again. This is perhaps the most common reason for getting a life insurance policy. Life insurance policies can be used to pay college tuition, medical bills, funeral expenses, or to pay off a mortgage.

Children and spouses aren't the only ones who are protected in the event of a death. If the insured helps to support aging parents or other relatives, the money left behind will ensure they are financially supported as well.

Cover medical and funeral expenses
If the death was the result of an illness or injury, chances are there will be medical bills to pay for. With the average cost of a hospital stay just under $700 a day, these bills can add up, and they are not always covered by insurance. A life insurance policy will help to cover these medical expenses.

Not only that, but funerals have increased in cost as well. Most people can expect to spend around $6,000 on a funeral now. In addition, "death" taxes on a person's estate are often accrued when a person dies. A life insurance policy will help to offset these costs.

The insured's beneficiaries also are covered as well in the event of a medical emergency. Often, their own medical insurance ends once a parent or spouse dies. A life insurance policy can help to cover these costs until additional insurance is found.

Make contributions
In some cases, people opt to name charities or causes as the beneficiaries of their life insurance policies. This is particularly the case if they know their families will already be cared for financially.

These are just a few reasons people opt for life insurance policies. How much life insurance you purchase depends on your overall goals - if you want to create an inheritance for your children, for example, or make a sizeable donation to a favorite charity, then you should purchase a policy that will meet your needs and accomplish your goals.

When determining how much life insurance to get, you should also be careful to take into account income that doesn't necessarily come in the form of a check. That includes things like medical and dental insurance.

Types of life insurance
There are a variety of different types of life insurance, depending on your needs, wants, and stage in life. When looking for life insurance, it is important to carefully consider each type of insurance and the advantages and disadvantages of each before making a decision. Life insurance comes in a number of difference forms. The following are some of the different types of life insurance and the advantages, as well as disadvantages, of each.

Term insurance
Term insurance is one of the types of life insurance you can buy. With term insurance, the insured is covered under the policy for a specified period of time; it can anywhere between 1 or 30 or more years. A term insurance policy, as the name implies, will only pay the benefits if the insured dies during that term, or period of time.

People usually get term insurance to cover large expenses that would take place were they to die during the period of time that their term covers, such as their children's college tuition or their mortgage payment or other debts that will go away at some point.

Advantages of term insurance

• Affordable. Term insurance is the most affordable kind and was designed to provide a temporary coverage for people on a limited budget who still want protection. Monthly premiums are typically lower than for other types of insurance, particularly if you are purchasing the policy while you are young.
• Adjustable premiums. While there is a capped amount that will never go over, term insurance has adjustable premiums, meaning the premium amount will go up or down based on earnings, health, and so forth.
• Term insurance provides added protection for expenses that will disappear over time, like tuition or mortgage payments or added costs that go into raising a young family.
• Depending on the specifics of the policy, many times term premiums will pay all or at least some of the premiums at the end of the term if there was no death benefit paid.
• Term insurance can be renewed at the end of the term, but the premium will most likely increase.
• Ability to convert. Many insurance companies will allow holders of term insurance to convert their polices to a permanent policy providing specific guidelines are met (for example, the company may require you be a certain age if you are going to convert your policy.)

Cash value (permanent) life insurance
Unlike term insurance, this type of insurance has lifelong protection while the premiums are being paid, instead of just protection over a specified period of time. The cash value may grow over time and be tax exempt, and the cash is available only if you cancel the policy before death. Keep in mind the cash value is different than the actually face amount of the policy, which is what would be paid to your beneficiary in the event of your death.

Whole life insurance
Whole life insurance is typically the most common kind of policy, with premiums and death benefits remaining constant throughout the life of the policy. However, once a person begins to age or their health starts to fail, whole life insurance will be difficult to come by or the premiums will be very expensive. For that reason, it is best to get whole life when you are relatively young and healthy.

Some of the benefits of whole life insurance include:

• Level. Whole life is considered level insurance, meaning the younger you are when you get the policy, the less expensive your premiums will be.
• Cash values. Whole life also has guaranteed cash values, which is a portion of the money you pay into your policy that accumulates into money you can later cash in and use.
• Flexibility. The premium costs of a whole life policy are flexible, depending on your needs. Premium costs typically are influenced by age, health,

Universal Life Insurance
Also called variable life insurance, this type of life insurance is the most flexible, in that it is adjustable and the policy accumulates account value over time. The cash value is credited each month with interest. You can change the amount of the death benefits as your needs change or your financial situation changes. Those who opt for variable life insurance choose investments for their cash value and death benefits, which will vary throughout the term depending on the market and investments they choose.

Universal life is similar to whole life, except it has a potential for a larger cash value growth, depending on the interest rate at the time.

Benefits of universal life insurance include:

•     Tax benefits. Universal life insurance is covered by certain tax laws regarding life insurance, which means that the proceeds from the life insurance are income tax free to your beneficiary. In addition, the policy's account value will accrue interest that is federal income tax deferred.
•     Flexibility. The flexibility of Universal makes it an attractive options for many. The death benefit can be increased or decreased without getting a brand new policy, and there is a wider range of premium payments.
•     More money. If the market is performing well, those who opt for universal life insurance have a greater potential to increase their cash value.

While no one likes to plan for their own death, purchasing the right life insurance policy is crucial to ensure the financial security of your family members, loved ones, and named beneficiaries. If you are still unsure of how the various policies work or which one is right for you, talk over your options with your insurance agent, who can help you pick out a policy that will meet your needs.