Life insurance companies offer two different types of life coverage. These are term life insurance and whole life insurance. In case of whole life insurance, the entire life is covered and the costs are calculated accordingly. Term life insurance is when the time covered is 5, 10 or 15 years. Your life will be covered for the term of the policy and the beneficiaries receive the money paid out as a death benefit if the insured dies during that certain period of time.
The whole life insurance premiums are exorbitant if compared with relevantly more affordable costs of term life insurance. Term life insurance is usually preferred by young people on a budget and without any serious ailments. They simply cannot afford the costs of whole life insurance.
Life insurance companies are hesitant to promote term life insurances as it lowers their commission in that case. In recent years a few life insurance companies have failed to provide coverage under their policies, although in most cases the policyholders have eventually been paid to. Nevertheless, it is strongly recommended not to deal with the unheard-of companies, otherwise the chances are high that there would be inconvenience to the people who are using them.