If you have a permanent need, buy whole-life insurance if you can afford it. A permanent need is a need that will require cash for your survivors when you die, Paying estate taxes, supporting an adult child with Down's Syndrome in a group home, supporting a favorite charity after your death, or providing supplemental lifetime income to a surviving spouse.

If you have a nonpermanent need, buy term life insurance. Examples of nonpermanent needs include living expenses while the children are growing up, paying off a mortgage, or paying for the children's college education. Buy annual renewal term insurance if your need is pressing for only a year or two. Buy only guaranteed renewable and convertible term products. You never know what the future may hold.