The types of life insurance can be divided into two basic categories: Temporary and Permanent. Temporary or term life insurance provides life insurance for a specific period with a corresponding premium. It does not accumulate any cash value. Permanent on the other hand remains in-line until the pay out period unless premium payments are considered default. The policy cannot be cancelled by the insurance provider except for reason of fraud in the application and within two years of activation.

Aside from the two basic categories of life insurance, it can still be broken down into common sub-categories of life insurance which includes universal, endowment, variable universal, variable, whole life and term life insurance.

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