Whole Life Insurance
The premiums from whole life insurance will stay the same over the life of your policy and you have no control over how the money is invested. The nice thing about whole life insurance is that you have a great tax benefit but you cannot invest this money from the cash value account into stocks, bonds, or mutual funds. Whole-life insurance policies are more expensive than the other life insurance policies.

One of the nice benefits of a whole-life insurance policy is that it will pay the death benefit no matter when you die. Each year, you are responsible for paying the premium. The premium is the money that is put into an account known as a cash-value account. The cash-value account can be used in the future to help you pay fixed premiums. You can also borrow against the cash value or receive the excess cash if your policy is cancelled. Whole-life insurance companies will typically charge you a penalty if you cancel the account or if you borrow against the cash-value account. You may also be hit with interest charges if you borrow money from the cash-value account or if you close out the account before death or before the end of the term.

Variable Life Insurance
A variable life insurance policy will have a cash-value account and you can choose what to do with this account. Many people choose to invest this money into stocks or bonds and watch it grow. However, variable life insurance is a risky policy if you choose the wrong investment, you may end up paying more in premiums to make up for the loss in the cash value account.

Term Life Insurance
Term life insurance is the most popular type of life insurance. It is offered through your employer and is written for the term of the policy (one to 30 years). You can purchase term life insurance through other insurance companies, even your home owners insurance coverage may include life insurance investment options.

If you die during the term of the policy, the insurance company will pay the death benefits to your stated beneficiary; this person must be at least 18 years old. Once your term ends, your life insurance policy ends. Most people select term life insurance because the premiums are usually the cheapest. As your age increases, your premium will increase. Employers like term life insurance plans because they can enroll in "group" terms to offer to their employees. A term life insurance policy that is offered through your employer will only be good as long as you stay with the company.

Universal Life Insurance
This is the final type of life insurance you can purchase. You can vary your premium amount, which is a huge benefit from other life insurance options. This basically means you can use part of your accumulated earnings to cover part of your premiums and you can vary the amount of your death benefit. It is a flexible life insurance policy, but you will pay higher premiums for the flexibility. Life whole life insurance, it is a lifetime coverage plan.

A good insurance broker can help you select a life insurance policy that fits your financial need. When it comes to life insurance, you should purchase enough that will cover your debts, your funeral expenses, and your family's cost of living.