Basics

You can find all sorts of blog posts and other articles on the internet about the types of life insurance.  If you’ve read any of those, or otherwise already know about this topic, please excuse me.  However, I recommend that you read this post anyway, because you may learn a little bit.

Before I wrote this, I did a Google search on “types of life insurance,” just to see a sampling of what’s out there.  I was not very happy with a lot of what I found.  A pretty high proportion of articles claimed, or at least gave the impression, that there are several basic types of life insurance.  I suppose it might depend a little on how you categorize the different types, but quite honestly, that simply is not true.

On the most fundamental level, there are two–and only two–types of life insurance:  temporary and permanent.  Temporary is called term life, and permanent is called whole life.  All other categories (and there are a lot) are subdivisions of those two main categories.

Term is mostly just term.  But whole life has a bunch of different kinds–universal, variable, accidental death, etc.  And most of those are further subdivided.  I’ll devote future posts to greater detail about all these kinds.

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About lifeandhealthadvisor

I teach people about insurance and how money works, and I help people decide which form of safe money is best for them. I operate primarily in the Pikes Peak region.
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