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Life Insurance There are two main types of Life Insurance: Term Assurance & Whole of Life or Endowment Policies What is the difference between Term Assurance and Whole of Life or Endowment policies? The simplest answer to this question is that term insurance provides protection against death during a specified period and whole of life insurance provides protection against death at any time. This is a very important distinction to make. Term insurance will last for between one and about 30 years. Should you die during this term, you will receive a benefit. Whole of life insurance will always result in a payment. How much that payment is depends on what type of policy it is and the performance of any investments within the policy. Term insurance provides more insurance for less money than whole of life policies. This is because premiums are lower, as the insurance company may not have to pay out at all. Therefore you are able to purchase more coverage when you most need it. Level term insurance is appropriate for someone needing to provide a certain amount o