There are two general types of life insurance and choosing the best of them assures that you get the best value for the premiums you pay. They are term and permanent life insurance, and from the names you can surmise their differences. Term insurance is effective for a time period (term) that is indicated in the policy. For cost effectiveness this is the choice for it is cheaper and some companies offer conversion from term to permanent as an option. Permanent insurance stays enforced as long as the policy is within the coverage period.