Not all types of life insurance policies are created equally. How long the policy lasts, the cost and extra provisions depends on the type of life insurance policy coverage.
Broadly speaking, life insurance is divided into two different types: Term and Cash Value Life Insurance.
Most people who need life insurance only need term, especially if they’re investing their money in traditional savings accounts. With term life insurance, you pay a low amount of money for the peace of mind that comes with having life insurance for a specified period of time.
People who put the maximum contribution to their retirement account each year may find that the cash-value component allows you to grow even more of your money. For that reason, wealthier people may prefer a cash value life insurance policy such as whole life, that is a lifetime policy.