Life Insurance FAQs What is life insurance? A life insurance is a contract between an insurer and a policyholder in which the insurer agrees to pay a designated beneficiary a sum of money upon the death of the insured person. What are the different types of life insurance? There are two main types of life insurance: whole life and term life. Whole life insurance provides coverage for the duration of the policyholder’s life, while term life insurance only covers the policyholder for a set period of time. What are some of the things I should consider when shopping for life insurance? When shopping for life insurance, you should consider your age, health, lifestyle, and coverage needs. You should also compare different policies to find the one that best meets your needs. What is the difference between whole life and term life insurance? Whole life insurance covers the policyholder for the duration of their life, while term life insurance only covers the policyholder for a set period of time. Whole life insurance also accrues cash value, which can be used to cover expenses in the event of the policyholder’s death. What are some of the things I should look for in a life insurance policy? When looking for a life insurance policy, you should consider the insurer’s financial stability, the policy’s premiums, and the policy’s coverage. You should also read the fine print to make sure you understand the terms and conditions of the policy. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.