What are the two main types of life insurance?

The two main types of life insurance are term life insurance and whole life insurance. Term life insurance offers coverage for a specified period, typically ranging from one to thirty years. If the insured passes away during this period, the death benefit is paid out to the beneficiaries. However, if the term expires and the insured is still alive, no benefit is paid, making it a cost-effective choice for many individuals seeking temporary coverage.

Whole life insurance, on the other hand, provides coverage for the individual's entire lifetime, as long as premiums are paid. In addition to offering a death benefit, whole life policies also accumulate cash value over time, which can be borrowed against or withdrawn by the policyholder. This makes whole life insurance not only a means of providing financial security for beneficiaries upon death but also a valuable financial asset for the policyholder during their lifetime.

The other options presented include forms of life insurance that, while important, do not represent the two main types. For instance, endowment policies are specialized forms of life insurance that combine features of whole life and term insurance but are not as widely recognized as the primary categories. Similarly, universal life and variable life insurance are types of permanent life insurance but are considered subcategories within the broader classifications of permanent coverage rather