Types of Life Insurance Policies
Life insurance comes in various forms to suit different needs and budgets. The two
main categories are term life insurance and permanent life insurance.
Term Life Insurance: This policy covers a specific period, such as 10, 20, or 30
years. It’s affordable and ideal for those seeking temporary coverage, like parents
with young children or individuals with significant debts. If the policyholder
outlives the term, the coverage expires unless renewed.
Permanent Life Insurance: This includes whole life and universal life policies,
offering lifelong coverage as long as premiums are paid. These policies often build
cash value over time, which can be borrowed against or withdrawn. However, they
come with higher premiums than term policies.