The best type of life insurance depends entirely on what you are trying to protect. Learn the differences below.
Like renting an apartment. You pay a lower amount, but it only lasts for a specific 'term' (like 10, 20, or 30 years). If you die during this term, it pays out. If you outlive the term, the coverage simply ends.
Like buying a house. It is designed to last your entire life as long as you pay the premiums. A portion of your premium goes into a 'cash value' account that grows slowly over time.
Also known as burial insurance. It is typically a very small whole life policy (usually under $25,000) designed specifically to cover end-of-life medical bills and funeral costs so your family doesn't have to.
A type of permanent insurance that offers more flexibility than whole life. You can sometimes adjust your premium payments and your death benefit. The cash value component is often tied to interest rates or stock market indices (like Indexed Universal Life).