Life insurance has two categories: Term and Permanent.
Within the Term category is regular Term and Return of Premium Term. Term insurance usually has no cash value and jumps way up in price at the end of the term. The latter, ROP Term, will return a portion of the premiums if the policy is cancelled in its later years. If the Insured person is alive when the term ends, 100% of the premiums that were paid in will be paid back to the owner of the policy.
Permanent Life Insurance includes Whole Life and several types of Universal Life. These policies have a savings feature in addition to the pure protection, that allows them to stay in effect to a very advanced age. The cash value can also be accessed for other purposes while the Insured person is still alive.
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Within the Term category is regular Term and Return of Premium Term. Term insurance usually has no cash value and jumps way up in price at the end of the term. The latter, ROP Term, will return a portion of the premiums if the policy is cancelled in its later years. If the Insured person is alive when the term ends, 100% of the premiums that were paid in will be paid back to the owner of the policy.
Permanent Life Insurance includes Whole Life and several types of Universal Life. These policies have a savings feature in addition to the pure protection, that allows them to stay in effect to a very advanced age. The cash value can also be accessed for other purposes while the Insured person is still alive.