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Life insurance

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Life insurance is a contract that pays a death benefit to named beneficiaries when the insured person dies while the policy is in force. People often use it for income replacement, mortgage or debt obligations, or final expenses. Coverage is commonly sold as term (temporary) or permanent (lifelong designs that may build cash value). InsuranceFinder lists firms that offer life coverage. It does not sell policies, take applications, or recommend a product.

Types of life insurance on InsuranceFinder

These related guides go deeper on each form. Open any one for more on each form.

Term life→Whole life→Universal life→Final expense→

How a life policy usually works

  1. You apply with an insurer (often through an agent or broker). Underwriting may ask about age, health, and coverage amount.
  2. If issued, you pay premiums on the schedule in the contract.
  3. If the insured dies while coverage is in force, beneficiaries file a claim for the death benefit under the policy terms.
  4. Term coverage typically ends when the term ends unless renewed or converted. Permanent designs continue if policy requirements stay met.

Term vs permanent — the practical difference

Term

Temporary coverage for a set period (often 10, 20, or 30 years). Many designs have level premiums for the term. Usually no cash value. Often used when the need is temporary (for example a working years / mortgage window).

Permanent

Designed for lifelong coverage if premiums and policy rules are met. Many forms can build cash value. Whole life and universal life are common permanent families — see their guides for mechanics.

Neither form is “best” in the abstract — the contract and the person's situation decide fit. InsuranceFinder does not rank products.

Life coverage parts people usually ask about

1. Death benefit

Amount payable to beneficiaries on a covered death, subject to contestability, exclusions, and any policy loans on permanent forms.

2. Beneficiaries

Who receives the death benefit. Keeping designations current matters; contingent beneficiaries are often named as backup.

3. Riders (optional)

Add-ons some insurers offer (for example accelerated death benefit, waiver of premium, or child/spouse riders). Availability varies by company and state.

4. Cash value (permanent only)

On many permanent policies, a cash-value account may grow under the contract. Loans or withdrawals can reduce the death benefit — read the form.

What usually affects life insurance cost

  • Age and health at underwriting
  • Coverage amount (face amount)
  • Term length (for term policies)
  • Tobacco use and certain avocations or risks the insurer rates
  • Riders and product design (term vs permanent)

InsuranceFinder does not quote premiums. Open a firm's profile for contact details.

Important life insurance exclusions to know:

Life policies typically exclude or limit payment for suicide within an initial contestability period, and may exclude deaths tied to material misrepresentation on the application. Some forms limit certain high-risk activities. Lapses for non-payment end coverage. Always read the policy contract. This page is education, not advice to buy a policy.

How to check an agency license →

Who typically uses life insurance

Life insurance is typically carried by people who want a death benefit for beneficiaries — often to help with income replacement, mortgage or debt obligations, or final expenses. Term policies are commonly used for temporary needs over a set period; permanent policies are commonly used when lifelong coverage or cash value features are the goal. Exact suitability depends on the person's situation and the contract — InsuranceFinder lists firms; it does not recommend a product.

Life insurance: choosing, keeping and finding a policy

Term or permanent

  • Term life lasts for a set period, such as 10, 20 or 30 years, and pays only if you die in that period.
  • Permanent life, such as whole or universal life, can last for life as long as the policy stays in force, and can build cash value.
  • Term usually costs less at first for the same death benefit. Permanent can last for life and builds cash value.

Before you sign

  • Ask for the life insurance buyer’s guide and a policy summary. Many states require the company to give you a buyer’s guide; rules on the summary vary by state.
  • For permanent policies, read the illustration: which values are guaranteed and which are not.
  • Name your beneficiaries, and a backup.
  • Check the free-look period, usually stated on the first page of the policy. During it you can return the policy for a refund. It is often 10 days after you receive the policy, and some states and policy types allow longer.
  • If the new policy replaces an old one, you’ll usually be given a replacement notice. Keep the old policy until the new one is in force.

If the company fails

State life and health guaranty associations protect eligible policyholders, up to limits set by state law, when a life insurer fails and is placed in liquidation. Limits and what's protected vary by state.

Looking for a lost policy

If a relative has died and you think there was a policy, the NAIC Life Insurance Policy Locator is free. Participating companies search their records and contact you if you are the beneficiary.

Keep reading

Insurance agents by cityHow insurance quotes workInsurance companiesHow to check an insurance license

Official sources

Sources checked Oct 2026. Rules change; your state insurance department has the current version.

Questions about this page

What is the difference between term and permanent life insurance?
Term life lasts for a set period and pays only if you die in that period. Permanent life lasts for life while premiums are paid and can build cash value.
How do I find a life insurance policy after someone dies?
Use the free NAIC Life Insurance Policy Locator. Participating companies search their records and contact you if you are the beneficiary.
Does InsuranceFinder sell life insurance?
No. InsuranceFinder is a free online database of insurance agents, brokers and carriers. It does not sell policies, give prices or take applications. Each firm page shows the firm’s phone number and office address.