The two primary types of life insurance are permanent life insurance and term life insurance.
Permanent life insurance – This policy offers lifetime coverage and financial protection, regardless of your age. This type of life insurance is generally more expensive. Your beneficiaries will receive a tax-free lump sum when you die, which will provide financial security for your dependents.
Term life insurance – This policy covers a policyholder for an agreed fixed term, usually 20 – 30 years. A payout will only be made to your beneficiaries if you pass away within the stipulated term. Premiums associated with a term life insurance policy are generally lower than that of a permanent life insurance.