There are two basic types of life insurance that a person has to choose from, including term and permanent. Term life insurance is purely life insurance while permanent insurance policies include a savings element.  Depending on what a person's specific requirements and financial situation is, there will be benefits to both.  Term life insurance generally helps those with lower financial budgets and less money.  Knowing how much money to put into an insurance plan will also depend on where a person is in their life. 

There are many benefits of having a term life insurance.  For one, the policies are typically straightforward and to the point. This means that if a person should die during the term of their policy, the beneficiaries get paid without any other hassle.  How much money they get paid will depend on several factors, but can be easily determined for any situation. Term life insurance is also inexpensive. The person with this policy is not paying anything extra to fund a savings account or cover investment fees. And because the market is so competitive for term life insurance, companies have a huge incentive to keep prices low.  It's easy to shop for term life insurance. With relatively little effort a person can comparison shop and be assured of a good deal.  A person only pays for what they need when they need it. Those with term life insurance typically need life insurance coverage for a specific period of time (until the kids are out of college, for instance).

There are also benefits of a permanent life insurance policy as well.  Flexibility is the best advantage of permanent life insurance. A permanent plan can give a person access to some or all of the premiums that they have been paying for in a way that is favorable to their taxes.
Permanent life insurance is with the person until they die. This type of policy coverage is guaranteed for life with no out of the blue payment increases. A term policy will expire at a certain date, and a renewed policy could have much higher premiums. Maybe the best reason for a permanent life insurance policy is to make sure any estate and investments don't get eaten up by the government. A permanent life insurance policy can provide peace of mind that family and loved ones will be taken care of for the future.

The decision to buy a permanent or a term life insurance policy will depend on a person's situation, age, financial well-being, and other factors.  A young family with some investments to protect but that is not financially stable might consider a term life insurance policy to protect those investments and their family. However, if someone is financially stable with considerable investments, it may be a better decision in the long run to purchase a permanent life insurance plan.