Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period. 

 Whole life insurance is a type of permanent life insurance, which means the insured person is covered for the duration of their life as long as premium are paid on time. Permanent life insurance is different than term life insurance, which covers the insured person for a set amount of time (usually between 10 and 30 years). 

Permanent life insurance is an umbrella term for life insurance policies that do not expire. The two primary types of permanent life insurance are whole life and universal life, and most permanent life insurance combines a death benefit with a savings portion. Whole life insurance offers coverage for the full lifetime of the insured, and its savings can grow at a guaranteed rate. 

Universal life insurance is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest 

Indexed Universal Life (IUL) insurance policies can help you build wealth while leaving behind a death benefit for your loved ones. These policies put a portion of the policyholder’s premium payments toward annual renewable term life insurance, with the remainder added to the cash value of the policy after fees are deducted. On a monthly or annual basis, the cash value is credited with interest based on increases in an equity index. 

Final expense insurance (also known as “funeral insurance” or “burial insurance”) is a form of a whole life insurance policy with a small death benefit. It is beneficial in that it is easier for seniors to get approved for it. Most often it requires answering only a couple of health-related questions, but a medical exam is not obligatory.