There are six different types of term life insurance:
If you die during the term it pays. If not, coverage expires at the end of the term. The premiums don't go up or down. It is less expensive than permanent life insurance because you have to die during the term for it to pay a death benefit.
Permanent life insurance runs for the rest of your life. The premium never goes up or down and when you die the death benefit pays. This type of life insurance always pays a death benefit as long as you pay your premium. (There are some other details but these are the basic facts.)
These types of life insurance policies require a blood test, urine sample and doctor's records. They will help you qualify for the least expensive policies, but to get them you need to be in relatively good health. It usually takes about 4 to 8 weeks to get approved for one of these life insurance policies.
Example 1 — Medically underwritten 20 year Term, Male 55, Non Smoker $25,000 $23.08 per month.
Example 2 — Medically underwritten Guaranteed UL, Male 55, Non Smoker $25,000 $42.63 per month.
These life insurance policies are typically for people with some health issues who don't want to go through medical underwriting. They are easier to get than medically underwritten life insurance policies and make sense for smaller policies where people have some health issues. The application is based on medical questions. These typically take 1 week to get.
Example 3 — Simplified Issue 20 Year Term, Male 55, Non Smoker $25,000 $37.08 per month.
Example 4 — Simplified Issue Whole Life, Male 55, Non Smoker $25,000 $80.31 per month.
These life insurance policies are typically for people with serious health issues such as cancer, heart disease, COPD, kidney dialysis, HIV and others. There are no health questions and they are graded life insurance policies. Typically if there is a death in the first 2 years there is a return of premium plus interest.
Example 5 — Guaranteed Issue Term to 70, Male 55, Non Smoker $25,000 $75.00 per month.
Example 6 — Guaranteed Issue Whole Life, Male 55, Non Smoker $25,000 $115.93 per month.
Obviously, each situation is different. And these descriptions are simplified. But this should give you an idea of what life insurance is available and the relative cost.