There are several common types of life insurance policies available. Here are the most frequently encountered ones: Term Life Insurance: Term life insurance provides coverage for a specified period, usually 10, 20, or 30 years. If the insured person passes away during the term, the policy pays out a death benefit to the beneficiaries. Term life insurance is typically more affordable than other types of policies and is suitable for individuals who need coverage for a specific period, such as while they have dependents or outstanding debts. Whole Life Insurance: Whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured person. It offers a death benefit as well as a cash value component that accumulates over time. Whole life insurance premiums are generally higher than term life insurance, but the policy builds cash value that can be accessed during the insured’s lifetime. Universal Life Insurance: Universal life insurance is another form of permanent life insurance. It provides flexibility in terms of premium payments and death benefits. The policyholder can adjust the death benefit and choose how much to pay into the policy’s cash value component, subject to certain limits. Universal life insurance offers potential for cash value growth, and the policyholder can use the cash value to pay premiums or take out loans. Variable Life Insurance: Variable life insurance is a type of permanent life insurance that allows the policyholder to allocate a portion of their premiums into investment accounts. These accounts are invested in various financial instruments such as stocks, bonds, or mutual funds. The cash value and death benefit of a variable life insurance policy can fluctuate based on the performance of the underlying investments. Indexed Universal Life Insurance: Indexed universal life insurance combines features of universal life insurance with the potential for cash value growth linked to the performance of a stock market index, such as the S&P 500. The policyholder can allocate premiums to a fixed account or an indexed account. While the policy offers a minimum guaranteed interest rate, the cash value growth is tied to the performance of the chosen index. Final Expense Insurance: Final expense insurance, also known as burial insurance or funeral insurance, is designed to cover the costs associated with a person’s funeral and other final expenses. It provides a smaller death benefit compared to other types of life insurance and is primarily intended to alleviate the financial burden on the family. These are the common types of life insurance policies, but it’s essential to evaluate your needs and consult with a financial advisor or insurance professional to determine the most suitable option for you.