A general rule of thumb is to buy life insurance that equals five to seven times your gross annual income. What is term insurance?
There are two basic types of life insurance: term and permanent insurance. Term insurance offers protection only for a specific period of time. The death benefit is paid only if the insured dies during the term. Premiums can remain level for a period of time, or can increase throughout the period. Most term policies can be renewed at the end of a specific period or be converted to permanent coverage.
