Some policies routinely pay for normal pregnancy and well baby care. Other types of coverage, for example auto insurance, may pay some medical expenses. Group plans provided as an employee benefit provide health insurance coverage for most Americans. Life Insurance Term insurance and cash value insurance are the two basic types of life insurance. Cash value life insurance combines protection with a savings or investment feature.
Premiums remain level for the life of the policy.
The premiums fund the cost of insurance and the savings or investment account. Term insurance is protection from the financial consequences of premature death and a term policy pays only when the insured dies within a specified period. If the insured lives past the designated term, the policy ends and the beneficiary receives nothing. Term insurance usually begins with low premium rates for young people, but the premiums go up as the insured person ages.