There are two basic types of life insurance policies: Term and Permanent.
Term life insurance is temporary protection lasting for a specific number if years, usually up to a maximum of 30 years.
Many insurers offer term life plans for a term of 10, 15, 20, 25 or 30 years.
If you pass away during the policy term, the insurer pays out the death benefit to your beneficiary. If you outlive the term, the coverage ends with no payout.
Permanent life insurance (also known as whole life insurance) provides guaranteed lifetime protection for as long as you live. It also builds up cash value inside the policy over time, form which you may take a loan if needed.
Permanent life insurance may cost up to 5 to 10 times more than term insurance for the same amount of life insurance protection.
If you need life insurance for 30 years or less, term life offers the most coverage at the lowest cost.
If you need life insurance for more than thirty years, then permanent life insurance offers a good option.
Learn more about term life insurance versus permanent life insurance.