What are the two main types of life insurance?

Term and permanent life insurance are indeed the two main types of life insurance. Term life insurance provides coverage for a specific period or "term," typically ranging from 10 to 30 years. If the insured individual passes away during this period, the policy pays a death benefit to the beneficiaries. However, if the term expires and the policyholder is still alive, there is no payout, and the coverage ceases unless it is renewed.

On the other hand, permanent life insurance encompasses various types, including whole life and universal life insurance. These policies provide coverage for the entirety of the insured's life, as long as the premiums are paid. Additionally, permanent life insurance typically includes a savings or investment component, known as cash value, which grows over time and can be borrowed against or withdrawn by the policyholder.

The combination of term and permanent life insurance offers a variety of options for individuals seeking life insurance, allowing them to choose a plan that fits their financial planning and life stage needs.