Types

• Types of life insurance are decreasing term life, yearly renewable term, guaranteed level premium term, return of premium term life, survivorship life, whole life, universal life, variable universal life and variable life.
  
  

Term Policies

• Standard term life insurance policies all have level death benefits and can be purchased for periods of from one to 30 years. A term life policy is bought by an insured to allow his survivors to pay off debt in case of his death.
  
  

Permanent Policies

• Permanent life insurance policies provide coverage throughout a person's lifetime. They include whole life, universal life, variable universal life, variable life, guaranteed level premium to age 100, and survivorship life. Cash-value policies are investment tools.
  
  

Advantages

• Level premium term life provides long-term affordable insurance coverage suitable for people with young children or non-working spouses. Whole life, variable and universal life policies build cash value.
  
  

Considerations

• Term life insurance doesn't build cash value. The premium for a renewable yearly term policy increases each year as the insured ages.
  
  The premiums for whole life, universal and variable life policies are much higher, investment returns are low, and investment options are chosen by the company and are generally restrictive.