Lately I’ve been thinking about getting some life insurance for my parents, in case anything ever happens to them.
I’ve been looking into life insurance policies and I’ve become confused - how do they work? The life insurance policy that I have from my work is based on my salary. So lets say I make 50k and I choose the 1.5 option. I’d pay something like 5-7 dollars a payroll and if I expired my wife/kid would get 75k.
I’m looking for a roughly comparable policy for my parents (I realize that it would probably cost more then 5-7 dollars a payroll), but when I go on to the websites (metlife and liberty mutual) I see stuff about term life, variable life, permanent life, and annuities. In fact, after reading some of them, they almost seem like mutual funds.
Can someone give me a brief (and simplistic) rundown of the different types of life insurance and, if possible, the closest thing to what I’m looking for (ie, I pay X amount a month for a policy that pays X).