Life Insurance Brief

Life insurance can be classified into two basic categories when viewing a policy from the viewpoint of whether or not it accumulates cash savings:

Term Life Insurance: Pure Life Insurance wherein benefits are paid only upon the death of the insured (NO CASH SAVINGS accumulate for the insured). Much lower premiums than Permanent Life Insurance.
Permanent Life Insurance: (Whole Life Insurance is Most Common): Pays benefits to the beneficiary in case of death. In addition the insured has access to the Cash Value (Savings) by taking out an insurance loan at a nominal interest rate or canceling the policy to obtain the accumulated cash value of the Permanent Life Insurance Policy.