Term Life Insurance is the lowest cost Life Insurance and is typically purchased by people under the age of 60. "Term" means that the Rates are guaranteed for a particular length of time. When that length of time comes to an end, the policy will lapse (or expire) unless substantially higher premiums are paid. The beneficiaries of these policies will receive the Death Benefit TAX-FREE.

The Term lengths available for most insurance companies are 10 year term, 15 year term, 20 year term, and 30 year term. Term Life Insurance policies are often used for replacing lost income or paying off debts such as a mortgage.

Whole Life Insurance is a type of Permanent Life Insurance policy that will last until the insured passes away. Premiums are guaranteed to never increase.

Whole Life Insurance polices typically have Death Benefits of $1,000 - $30,000 and have simplified underwriting (they don't require a medical exam). Because of the simplified underwriting, they are easier to qualify for than some of the other types of life insurance policies. People often purchase Whole Life Insurance policies to cover their burial / final expenses.

Universal Life Insurance Policies can be designed as temporary or permanent life insurance policies. They are commonly designed to expire at age 121, grow a cash value within the policy, and keep level premiums throughout the life of the policy.

Most Universal Life Insurance policies require a minimum death benefit of at least $25,000. Many companies have a minimum of $100,000. These policies are usually Fully Underwritten (they require a medical exam as well as other medical and non-medical information to qualify). People of all ages purchase Universal Life Insurance policies. They are used to replace income, pay off debts, pay death taxes, or provide an inheritance to Beneficiaries.

Paid-Up Life Insurance is another type of Permanent Life Insurance policy. It only requires you to pay premiums for a short period of time. Common payment options are Single-Pay, 7-Pay, and 10-pay.

With Single-Pay, or Single Premium Life Insurance, only one single payment is made at the start of the policy. This will give the insured an immediate death benefit that is substantially larger than the amount paid in. For example, if a 50 year old female deposits $10,000, she will typically get at least $25,000 in death benefit (depending on the company) that will be guaranteed for life. The death benefit will be paid to the beneficiaries tax-free. These types of policies often have a Long Term Care benefit included. Some companies will even let you change your mind at any time and give a full refund of the money that you paid in.