Identify the two main types of life insurance.

Life insurance is primarily categorized into two main types: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, and pays a death benefit if the insured passes away during that term. The focus here is primarily on offering death benefit protection without any investment component or cash value accumulation, making it generally more affordable compared to permanent insurance.

Permanent life insurance, on the other hand, remains in force for the lifetime of the insured, as long as premiums are paid. This category includes whole life, universal life, and variable life insurance. These policies not only provide a death benefit but also feature a cash value component that grows over time, allowing the policyholder to borrow against it or withdraw funds.

Understanding these two main categories helps clarify the fundamental structure of life insurance products and the options available to consumers when seeking coverage, aligning well with the principles outlined in life insurance education.