Term Life Insurance: Provides temporary coverage for a fixed term (typically 10-30 years). Payout is given to beneficiaries if the policyholder dies within the term. Usually more affordable than permanent life insurance.

Permanent Life Insurance: Provides lifelong coverage with a guaranteed death benefit as long as premiums are paid. Includes different types such as whole life insurance, universal life insurance, and final expense insurance.

How to Choose the Best Life Insurance Policy: Choosing the right life insurance policy involves several important steps. First, determine the amount of coverage you need by considering your income and dependents. Next, assess the length of coverage required based on your future financial obligations. It's also crucial to consider your budget to ensure the policy is affordable. Additionally, evaluate any riders and policy features that might be important to you, such as benefits you can access while still alive or options to convert a term policy into a permanent one. Lastly, consulting with a financial advisor can be particularly beneficial for those with complex insurance needs, such as permanent policies or lifelong dependents, as they can assist with estate planning and navigating coverage options.

Policy Mechanics: Choose a policy and apply, which may require a medical exam. Then, pay premiums to keep the policy active. Beneficiaries receive a death benefit if the policyholder dies while the policy is in force.