The main forms of life insurance are Term Life and Whole Life.
Term Life policies are issued for a fixed term ranging from 10 to 30 years.
Term Life policies are less expensive that whole life. An agent selling term life
policies should explain to the client that insurance becomes more expensive
as you grow older, so the goal is not to have to replace a term life policy after the initial
term has ended, but to save money through other medium to avoid having to take out another term policy when they have advanced in age.
Whole Life Insurance accumulates a cash value progressively throughout its term, which ends at death.
While it is in force the cash value can be borrowed against.
If no repayment of the loan is made, the loan balance plus interest will be deducted from the death benefit at death. These policies are more expensive than term life policies, because of the savings feature.