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The Different Types of Insurance

Which should I buy: term insurance or permanent insurance?
Which type of insurance is right for you depends on your situation. Get more information.

What is whole life insurance?
Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash values. It is the least flexible form of permanent insurance.

What is universal life insurance?
Universal life is similar to whole life, except that you can change the death benefit (the money paid to the beneficiary when the insured person dies), the amount of premiums and how often you pay the premiums.

What is variable life insurance?
Variable life insurance is the riskiest form of permanent insurance, but it can also give you the best return for your money. Essentially, the life insurance company will invest your insurance premiums for you. If the investments do well, the death benefit and cash value of the policy go up. If they do poorly, they go down. It's a little like putting your savings into the stock market.

What is group life insurance?
Many companies allow their employees to buy group life insurance through the company. Usually, you can get very good rates for this insurance but you have to give the insurance up when you stop working there. For that reason, group insurance can be a good way to buy a little extra life insurance, but it does not make sense to make it your main policy.

Are there any other kinds of life insurance?
Yes, but they are all specialized forms of either term or permanent insurance. Learn more about them.

What is an annuity?
An annuity is a form of insurance that enables you to save for your retirement. Basically, you give the insurance company money for a certain period of time, and then after you retire they will pay you a certain amount of money every year until you die. There are many different forms of annuities, learn more about them. Most people who buy annuities are 55 or older.

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