Most of us think that buying a life insurance policy is quite simple until we are faced with the prospect of choosing one. Then we often realize we're going to need some dependable help to find the right insurance product for our needs. Finding an affordable life insurance policy that fits your needs perfectly is easy when you enlist the help of Spectrum Direct.

For a quick rundown of what's available, let's start with a look at whole life insurance. This is what usually comes to mind when people think about a life insurance policy, and is also known as permanent life insurance, or straight life. Policy holders pay fixed premiums in return for a fixed face amount. However, unlike a term policy, holders can cash in their policies at any time. They can also borrow against the value of their policies.

Then there's universal life, also sometimes known as flexible premium adjustable life. These policies are designed to provide the coverage needed when mortgages and other commitments need payment, and provide the flexibility to also convert them to permanent life in order to meet the special needs of later years. Second-to-die life insures the lives of two people, and a payment is made to a beneficiary once both parties have died.

A variable life insurance policy is a permanent life insurance policy. The monetary value of the policy is invested in a separate mutual fund. This means that the policy holder can expect higher rates of return. Term life insurance holders pay a fixed premium for a designated amount of time, with a fixed face amount. This is usually the most affordable life insurance policy. No equity is accrued with term life and you cannot borrow against it. You can convert most term policies to permanent, which is an important point to remember.

Some new additions to the life insurance policy repertoire include critical illness insurance. This kind of life insurance pays a lump sum following diagnosis of any kind of life-altering illness. These types of policies vary tremendously, so be sure you're getting coverage for a reasonable number of illnesses. A cash payment at such times will mean that the policy holder can afford lifestyle changes that are necessary, but often unaffordable in the event of serious illness. Remember that in addition to paying off your mortgage and any educational funds for your kids, you may also need to pay for treatments not covered by your medical insurance. You might also want your spouse to take time off work in order to be with you.