Term life insurance is set for a certain amount of time, usually somewhere between 15-30 years. This is the ideal type of life insurance for young adults. It is also the cheapest life insurance product on the market. After the set term is up, the policy expires. If you pass away within the policy term, your beneficiary receives the death benefit. If you do not pass away within the policy term, you receive nothing.

Whole life insurance is permanent. It will never expire as long as your premium payments are made on time. Your beneficiary is guaranteed the death benefit at the time of your passing. These types of policies accrue cash value as well as paying out a death benefit. The amount you pay for this type of policy is guaranteed to never change.

Universal life insurance policies are made to be flexible. You can raise or lower your death benefit or policy premium, should financially impacting circumstances occur in your life. These policies are also permanent and accrue a cash value. There are three different types of universal life insurance policies :

• Guaranteed Universal Life

• Indexed Universal Life

• Variable Universal Life

Mortgage protection insurance is a type of term life insurance that is designed to help your beneficiary with the mortgage payment should you pass away. These policies typically have a term between 15-30 years. Depending on your policy, some may decrease in payout value as time goes on and your mortgage is paid down, while others may offer a cash back feature that will return the premium amount you paid into it, when the term is done.

Final expense insurance is a type of whole life insurance that is geared towards older individuals who may not have a plan for how their final expenses will be taken care of. This is also called burial insurance. The average funeral cost these days is typically between $7,000-$15,000, with the average cremation cost not being far behind it. This type of insurance exists to help with those costs so that it won't be a financial burden on your family.