The best type of life insurance depends on what kind of coverage term, the extent of coverage you want to pass on to your beneficiaries, and the premiums. Term life insurance is best for affordability, covering the policyholder for a specified number of years. Premiums don't increase during the policy period, which is a benefit. However, the policy pays out if the insured dies during the covered term. Permanent life insurance carries cash value, so you can borrow against it to cover necessary expenses throughout your life. Universal coverage options are some of the most flexible policies, allowing you to set the frequency of payments and decide how much the payments will be as the rates change. Whole coverage options do not have fluctuating rates, but you will be paying premiums throughout your policy.