There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period, usually ranging from 10 to 30 years. If the insured person passes away during this term, the beneficiaries receive a death benefit. However, if the term ends and the insured is still alive, there is no payout. Whole life insurance, on the other hand, offers coverage for the insured's entire life as long as premiums are paid. This type of policy also includes a cash value component that grows over time, allowing policyholders to borrow against it or withdraw funds.