There are 5 different types of life insurance

Whole Life – Part of the premium is used to provide death benefits to the beneficiary, and the remainder is available to earn interest in the cash value account. Because of the additional cash value, whole life is more expensive than plans that provide for death benefits only.

UNIVERSAL LIFE INSURANCE – Provides more flexibility than a whole life policy.

VARIABLE LIFE INSURANCE – life insurance that provides a separate account of investments chosen by each policyholder

VARIABLE UNIVERSAL LIFE INSURANCE – a life insurance policy that includes characteristics of variable and universal life insurance policies.


NOTE: The term life insurance policy has no cash value. Therefore, term life is normally the cheapest life insurance to purchase.

NOTE: AM Best evaluates insurance companies that offer annuities and life insurance.