Life Insurance Life insurance is an insurance policy that is written on the life of the policyholder. There are two forms of life insurance – whole life insurance and term life insurance. With a whole life insurance policy, the policyholder pays monthly insurance premiums of a set amount for a specific length of time. When the person dies – even if it is before the life insurance policy has been paid off – a set amount of money is given to the person's beneficiary. Life insurance policies are sold in incremental amounts, with a monthly premium of a set amount of premium being paid for every thousand dollars or ten thousand dollars in coverage. Term life insurance is different from whole life insurance in that the policyholder is often the beneficiary of the policy. Term life insurance policies are purchased to cover a specific time period, with premiums being paid monthly throughout the life of the policy. If the policyholder dies during that time period, a third-party beneficiary gets the amount of money specified by the coverage. If the policyholder does not die during that time period, the money is given to the policyholder at the end of the term of the insurance policy. Quelle "Life Insurance" : General Main page for "Life Insurance"