Common Types of Life Insurance

Term Life Insurance
Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years. If the insured passes away during the policy term, the insurer pays the stated death benefit to the designated beneficiaries. Term insurance is generally more affordable than permanent coverage and is commonly used for income replacement, mortgage protection, and other temporary financial obligations.

Whole Life Insurance
Whole life insurance provides permanent coverage designed to remain in force for the insured's lifetime, provided the policy requirements are met. In addition to the death benefit, whole life policies generally accumulate cash value over time and may provide guarantees regarding premiums, cash value, and death benefits, subject to the policy terms.

Universal Life Insurance
Universal life insurance is a form of permanent coverage that typically provides greater flexibility in premium payments and death-benefit options than traditional whole life insurance. The policy also accumulates cash value, which may grow based on the policy's credited interest rate and applicable charges.

Indexed Universal Life (IUL)
Indexed universal life is a form of permanent life insurance in which the policy's cash value may receive interest credits based, in part, on the performance of a specified market index. The policyholder does not directly invest in the underlying index. IUL policies can offer flexibility and cash-value accumulation potential, but they also involve policy-specific fees, limitations, caps, participation rates, and other conditions.

Variable Life Insurance
Variable life insurance is permanent life insurance that allows the policyholder to allocate cash value among investment options. Because the cash value is tied to the performance of those investment options, it can fluctuate based on market performance. Variable life insurance generally carries greater investment risk than traditional whole life insurance.