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There are – basically – two different kinds of life insurance policies to choose from in Oregon: Term Life and Whole Life (there are also Universal Life and Variable Universal Life, but these are basically variations on Whole Life Insurance).
Term life insurance will undoubtedly provide you with the lowest initial premium payment. Term life insurance is a no-frills form of insurance that is easy to understand. The primary feature of term life insurance is that your policy will only stay in force for a specific number of years.
If you should die during the time that the policy is in force (that is, during the term of the policy) then the company will pay the agreed-upon death benefit to the beneficiary you designated. This is the simplest and most straight-forward insurance policy you can purchase, and – at least initially – this is the most affordable insurance.
For some people there are one or two drawbacks to a term policy. For one thing there is no cash value to the policy as there is over time with other forms of life insurance. The other major drawback is that when the term of the policy runs out you must buy a new policy at a higher premium rate if you wish to continue having term life coverage.
If the policy is renewed several times over the years, the premium rate can become quite high, erasing any benefit you received in the earlier years.
Whole life insurance, on the other hand, has a higher start-rate for premiums than a term life policy, but the premiums remain constant for as long as you choose to keep the policy in force. A portion of your whole life premium is deposited into a cash account, and over time this cash value can become quite substantial and can even be borrowed against at very low interest rates.
There are several things you can do to keep your life insurance affordable. First, get a policy as soon as possible – premiums are based on age and become higher the older you are.
Second, live a healthy lifestyle. This includes not smoking (smokers pay more for life insurance), and keeping your weight down.
Drive a sensible car (people who drive sports cars and other high-performance vehicles pay higher rates).
Don't routinely engage in extreme sports or have a risky job. Obviously putting your life at risk on a regular basis will increase how much you pay for life insurance.
And, finally, pay your bills on time. Many people are not aware that your credit history can affect how much you pay for insurance.
Talk with an insurance agent or get online and compare a wide range of life insurance plans until you find one that has the coverage you and your family need at a price that you can afford to pay for many years to come.