For many new and expecting parents, questions regarding the safety and well being of your family are natural. Many people often resort to life insurance, as it is a way to cover all of your concerns and deliver peace of mind to you and your family in the event of a death. However, choosing the right life insurance policy can often be complicated as there are different options to choose from. Here are the two most basic forms of life insurance defined and explained to help you choose the best option for you.

Term life insurance

The first, and most basic form of life insurance is known as Term Life. Term life insurance is the best option for anyone looking for insurance at its most basic form. With term insurance, you will own the policy for a predetermined amount of time and pay a set payment each year or month depending on your preference. What you pay for is simply the insurance and you receive nothing else for your money. Much like car insurance, you are taking care of yourself should anything terrible happen. With term life you will have a defined schedule of your payments over the course of the policy's existence, however, there are no guarantees that payments will stay the same and if the insurance company decides to, they can increase the amount of your monthly or annual payment, although this is rare. Term life insurance is basic, but its upside is that it is very cheap and serves the purpose of life insurance perfectly to cover you and your family's future.

Whole life insurance

If your goal is to put your money to more use, then whole life insurance offers a variety of benefits that are attractive. With whole life, your policy will not only contain a life insurance policy, but a portion of your annual payments will be set aside and invested in a series of mutual funds set up by the insurance company. The interest rate gained in a whole life policy can be fixed or variable depending on the structure of your specific policy. The downside of this policy is that your payments will be more expensive each year as opposed to term life, but the money you put into the policy has a good chance of growing, creating an investment for you and your family to benefit from in the future. This is a great option if you are looking for additional investment resources to broaden your current investment portfolio.

Whatever you decide may be best for you, it is recommended that you always consult a financial advisor in any investment decisions. For more information about life insurance, visit Guys Insurance.