Do you love your family? Yes, everybody does. You are always worried about them and care for them. Have you ever thought what your family will do if anything happens to you. What will be their source of income if you are the only earning one in your house? You may be traumatized by these questions. The answer to all this is saving for the future of your loved ones. The best solution is investing in life insurance.

When you are no longer around, life insurance will provide you an adequate amount of financial support to take care of the future of your family. A portion of your premium when deposited into the savings account makes provision for a cash value. Thus, along with a secured future, you can make good savings too. Life insurance is an agreement between you and your insurance company where the company pays an assured amount of money to your family in the event of your death. The cost of life insurance is based on your gender, your age, and your health. Under certain circumstances, the tax law provides that the interest on this cash value is not taxable. This leads to extensive use of life insurance as a tax-efficient method of saving as well as protection in the event of early death. There are basically three types of life insurances.
They are as follows:

1. Term Life Insurance: You can go for a simple life insurance if you are managing your budget.  Term life insurance defines the benefits for a definite period of time or 'term'. The compensation is provided only in the event of the death of the policy holder during the term of the policy which may be either one or more years. This can also be renewed for further one more term. In this case your premiums will go higher. This is a short term investment and not a permanent one. There are five types of term life insurance:

1.  
   • Annual renewal term insurance: This insurance policy permits you to renew your term insurance each year. The renewal of policy is allowed till you attain a particular age which often halts at the age of 65.
   • Level premium term insurance: This insurance policy makes sure that your premiums do not increase for the defined term of the policy which may be 5-10 years.
   • Renewable term insurance: This policy automatically allows you to renew your term insurance policy even in your worse health condition when the term of the policy has been expired. This policy is for a longer period of time.
   • Convertible term insurance: This policy allows you to convert your term insurance into some other type of life insurance policy that the company provides.
   • Decreasing term insurance: While declining your cash returns each year this policy permits your premiums to persist at a level throughout. The item whose cost decreases with time is mostly covered with the help of this policy.

1. Whole Life Insurance: This is a permanent life insurance policy. A policy holder is protected or covered for his entire life by this policy. Like the Term life insurance there is no expiry date in Whole life insurance. The beneficiary will get the benefits only in the consequence of the death of the policy holder. When you buy the whole life insurance, you will have to pay a higher premium as a certain amount of the premium is saved in the savings plan. Whole life insurance is less expensive as compared to the term life insurance. The reason is, the premium remains the same for the term of insurance and do not go on increasing as in case of term life insurance when it is renewed. In this policy the premiums develop cash values that are either claimed or used to purchase proviso policies that provide more protection. This is the greatest advantage of this policy.
2. Universal Life Insurance: This insurance policy is a flexible policy. It offers safety to you and your family.