What are the main types of life insurance?

Term life insurance

Term insurance provides coverage for a specified period. It generally pays a death benefit if the insured person dies during that period and typically does not build cash value.

Review what happens when the term ends, including whether renewal or conversion options are available and how costs may change.

Permanent life insurance

Permanent insurance is designed to provide long-term coverage, potentially for life, provided the policy’s requirements are met. These policies generally include a cash-value component.

Whole life and universal life are examples. Their premiums, guarantees, flexibility, and risks differ, so it is important to understand how a particular policy works and what is required to keep it active.