Life insurance is a type of insurance policy where, in exchange for the payment of premiums, the insurance company will provide the insured’s designated beneficiaries a financial benefit upon the insured’s death. This benefit can be used to help cover expenses such as funeral/burial costs and medical bills. It can also be a source of financial security for loved ones and dependents.

The two most common types of life insurance policies are term life insurance and permanent life insurance.

Term life insurance is a policy that provides coverage for a specific term or time period of the policyholder’s life, typically 10-30 years. Beneficiaries receive a death benefit if the policyholder passes away during the term of the policy; however, if the policyholder outlives the term, the coverage ends (unless the policy is renewed or converted).

A permanent life insurance policy covers the policyholder’s entire life, features fixed premiums and a guaranteed death benefit, along with a savings component that grows over time. The cash value of a whole life insurance policy can be borrowed against or even withdrawn lifetime of the policyholder as long as premiums are paid.

Choosing the right life insurance policy is important. The decision not only considers the appropriate financial protection for loved ones, but other factors such as pricing, rates, duration and policy type should be explored as well. That’s why many people turn to a life insurance broker to help find the policy that is right for them. But what is a life insurance broker? Read on to learn about life insurance brokers, the difference between an agent and a broker and the benefits of using a broker.