There are two options to consider when choosing life insurance. Term and Perm. Term is obviously for a set amount of time. Once that term has expired you have to re-negotiate into a new contract at a higher rate since you are older. The rates will be the lowest under term. This method can not be used as an investment vehicle. (I think)
Perm/whole life insurance cost more, but your rate is locked. You also are allowed to invest money into this policy. The money you put in can be invested in stocks/bonds/mutual funds etc. This money can be taken out tax free. (This money might be borrowed can't remember)
Choosing the perm situation isn't for everyone. You should consult a financial advisory before making a decision.
I'm 27, with a kid on the way. I went with perm for various reasons that I'd prefer not to disclose on a public forum. But for me it was the right situation. It's a massive policy, but I want to make sure my wife and kids are taken care of.
If anyone wants to consult a professional for free, a good friend of mine is in the business. He can be contacted at
[email protected].