Term life insurance vs. Permanent life insurance

All life insurance policies fall under either term life insurance or permanent life insurance.  Whereas term life insurance policies terminate after a specified term of coverage, permanent life insurance policies are intended to last perpetually, so long as the necessary premium payments are made.

All permanent life insurance policies fall under either whole life insurance or universal life insurance.

Term life insurance

Term life insurance meets the needs of the standard life insurance customer.  It is the simplest and most affordable type of life insurance available.  (click here)

Whole life insurance

Whole life insurance is the simpler variety of permanent life insurance.  What distinguishes it from universal life insurance is that its death benefit and cash value are guaranteed to be a certain amount.  (click here)

Universal life insurance

Universal life insurance is more flexible than whole life insurance.  Thus, it can be a more lucrative investment tool, but as such, its management puts greater responsibility into the hands of the policyholder, whereas the only attention required by whole life insurance is the payment of premiums.  (click here)