There are two main classes of life insurance: permanent and term. Permanent life insurance is life insurance that is valid until the policy matures and would be voided only if the policy holder does not pay the premium when it is due. Permanent life insurance also accumulates a cash value and this cash can be accessed by withdrawal, borrowed in the form of a loan or even recovered in part, should the person concerned surrender the policy.
Term life insurance, on the other hand, provides life insurance coverage only for a certain amount of time and for a certain premium. Unlike permanent life insurance, term life insurance does not earn any cash value. The premium buys financial protection for the beneficiary, in the event that the insured dies, but it will provide for nothing else.
Another type of life insurance, which includes an accidental death benefit, called a limited life insurance package, is meant to provide coverage to an insured’s dependents, should the insured suffer fatally from an accident. This insurance does not cover death due to health problems or suicide, but it is frequently purchased, as it is much less expensive than other types of life insurance.
Whatever the type of insurance you may prefer, consult with a reputable independent insurance agent. Life insurance, like life, is a precious thing and it involves investment and knowledge.