Generally life insurance is to pay either a lump sump benefit or replace your income through some form of annuity payment, for your family in case of death. They usually break down into two groups. “Term” which you pay premiums every year and renewal may (but depending on the plan, is not always be guaranteed to) be renewable and “Whole Life”, which you pay much more for it but will stay in force your entire life. Term is the way to go for almost everyone. Term that has some kind of guaranteed renewal for the rest people. Whole for people who need life insurance but just don’t ever get around to renewing their term policies.