There are several different types of life insurance. First you can break down life insurance to whole life, endowment policies and term insurance. Whole life insurance costs more initially but it’s designed to have a lower premium in the later years. This type of insurance has cash value and provides coverage for your entire life.
Endowment policies are similar to whole life insurance except they have an expiration date. An endowment to age 65 ends at that age. You don’t lose anything, however, since the company writes a check for the face value of the policy. These types of policies are no longer popular and seldom sold. They are the most expensive type of insurance.
The third type of life insurance is term insurance. Term insurance also ends at a specified time but you don’t get anything back in most cases. However, it provides only insurance protection and is far more inexpensive than whole life insurance. The premium normally is quite low the younger you are but as you age, you’ll watch the premium increase along with the gray hairs in your head. By the age of 65, the price of the term insurance is to high for the average person to pay.