Life Insurance: Types and How It Works

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Term Life Insurance:
- Features: Provides coverage for a specified term (e.g., 10, 20, 30 years).
- Pros: Generally more affordable, straightforward coverage.
- Cons: No cash value or investment component.
Whole Life Insurance:
- Features: Offers lifetime coverage and builds cash value over time.
- Pros: Provides lifelong protection, acts as an investment.
- Cons: More expensive premiums.
Universal Life Insurance:
- Features: A flexible version of whole life, where the policyholder can adjust premiums and death benefits.
- Pros: Flexibility, lifetime coverage.
- Cons: Requires more active management.

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