1. Term Insurance
Term insurance is a type of insurance policy that only covers the period of time between the purchase date and the expiration date. A term insurance policy is cheaper than whole life insurance policies because it does not cover the cost of paying out death benefit claims. However, it is less expensive than permanent insurance policies because it does have a lower premium rate. Term insurance is ideal for people who do not want to pay a high amount of money for their insurance coverage.
2. Whole Life Insurance
Whole life insurance is a type of long-term insurance policy that provides protection for the entire life of the insured person. Unlike term insurance, whole life insurance pays out a death benefit after the insured person dies. Whole life insurance is ideal for people looking for a higher level of protection.
3. Permanent Insurance
Permanent insurance is a type of life insurance policy that lasts throughout the lifetime of the insured person. Like whole life insurance, permanent insurance pays out a death claim after the insured person dies; however, unlike whole life insurance, permanent life insurance premiums remain constant over the course of the insured person’s life.