Life insurance is a contract between an individual and an insurance company. It provides financial protection to the policyholder’s beneficiaries in the event of the policyholder’s death.

There are several types of life insurance, including term life insurance, whole life insurance, universal life insurance, and variable life insurance.

Term life insurance provides coverage for a specific period of time, usually 10, 20, or 30 years. If the policyholder dies during the term, the beneficiaries receive a death benefit. If the policyholder outlives the term, the coverage ends.

Whole life insurance provides coverage for the entire lifetime of the policyholder. It includes a death benefit as well as a cash value component that grows over time. Premiums for whole life insurance are typically higher than term life insurance.

Universal life insurance is a flexible type of life insurance that allows the policyholder to adjust the death benefit and premium payments. It also includes a cash value component that earns interest over time.

Variable life insurance allows the policyholder to invest a portion of the premiums in various investment options, such as stocks and bonds. The cash value and death benefit of the policy can fluctuate based on the performance of these investments.

The right type of life insurance for you depends on your individual needs and circumstances. If you need coverage for a specific period of time, term life insurance may be a good option. If you want lifelong coverage and the ability to build cash value, whole life insurance or universal life insurance may be more suitable. It’s important to assess your financial goals and consult with a qualified insurance professional to determine the best fit for your situation.