WHAT'S  A LIFE WORTH

Out of all the possessions we can appraise and get insurance policies for, it seems the strangest that an actual price can be affixed to our lives. However, there is no doubt that our lives — and especially the abilities we've gained throughout them — are worth something. And often our lives and livelihoods are not only valuable to us, but also to the other people — husbands, wives, children — who also depend on them.

BUYING LOW

As life expectancies continue to increase, life insurance rates continue to fall. Since there is a better chance that people will outlive the obligation of their insurance policy, that insurance is much cheaper to buy up front. But, while the trend of increased life expectancy may increase, it may be dangerous to wait around for rates to continue to fall. Life insurance should be bought when a person is healthy — rates rise precipitously for a person who isn't healthy— there's no way to know when illness may befall you, and if you wait, you take the risk paying a higher price for your health problems.

TYPES OF LIFE INSURANCE

There are two types of life insurance: term and permanent. Term life insurance covers you if you die during the period when you are covered by the policy.It is much cheaper to buy term insurance, however, it does not cover you for the duration of your life. Permanent life insurance, on the other hand, will cover you for your whole life (as long as you continue to pay the premiums), and pay your heirs after you die. Choosing the right kind of insurance should come from a measured evaluation of how your estate is planned, and how you would like to spread your wealth after you're gone.