Insurance is an important element of any sound financial plan. Different kinds of insurance help protect you and your loved ones in different ways against the cost of accidents, illness, disability, and death. The insurance decisions you make should be based on your family, age, and economic situation. There are many forms of insurance and, unfortunately, no one-size-fits-all policy.

Life insurance provides a death benefit for an individual's beneficiaries. It allows survivors to pay off debts and other expenses; it can also provide a source of income to replace that lost by the death of the insured. There are two primary types of life insurance: term, which provides insurance for a specified period of time at a lower cost; and permanent, which provides a certain amount of coverage at variable rates. There are other variations, including universal life, which builds cash value and is widely marketed by life insurance companies.