Term Insurance is very simple and generally inexpensive. This type of insurance only pays if deaths occurs during a specific period of time.
Level Term and Decreasing Term
Level Term - The Death Benefit will remain the same for the duration of the policy
Decreasing Term - The Death Benefit drops, often on an annual basis, over the policy term.
Whole Life or often called Permanent Life Insurance will pay a death benefit to your loved ones no matter when you die.
Whole - Universal - Variable - Variable Universal Life
Whole or Ordinary Life - The Death Benefit and Premiums stay the same. This policy serves as a death benefit as well as a savings account.
Universal or Adjustable Life - Depending on your health, you may be able to increase the Death Benefit and this policy has a Cash Value Account that generally earns a money market rate of interest.
Variable Life - Seen as a potential investment, this policy combines a Death Benefit with a Savings Account that can be invested in stocks, bonds and even money market mutual funds. If, however, these investments don’t perform well, your cash value and Death Benefit may decrease.
Variable Universal Life - This policy is a combination of Universal & Variable Life Policies. You combine the opportunity to adjust your Premiums and Death Benefits from Universal Life and have the risks and rewards from Variable Life