Just to get you up to speed, there are basically two different kinds of life insurance ? term life insurance, which insures you for a set number of years, and whole life insurance, which insures you for the rest of your life. Both of these kinds of life insurances can do more than just financially help your beneficiary in the event of your death (for example, certain types of both kinds of policies allow you to "cash in" on what you've paid should you find yourself in a financial emergency), and both offer you the tools for the job of planning for the future.

You may be asking yourself, "How can a life insurance policy, which isn't supposed to be used until I'm dead, help me plan for the future?" Take whole life insurance policies, for example. They offer a savings component, which can be used for your retirement, estate planning, the education of your children, or however else you want to use it. So, having a whole life insurance policy is also like having your own little savings account. Plus, the money is tax-deferred, which means you won't have to pay taxes on it.

Now you may be wondering, "Because of the tax-deferred savings component, should I purchase a whole life insurance policy rather than a term life insurance policy?" Some people purchase whole life insurance policies strictly as a way to get the job of saving for the future done; however, note that because of this savings component, whole life insurance policy premiums tend to be higher than term life insurance premiums. If you're search for simple life insurance with none of the extras, a term life insurance policy may be better for you.

In the end, it's your job to plan for the future. Choose a life insurance policy that will protect you in the event of financial strain, and your beneficiary in the event of your death.