A lot of people tend to overlook life insurance, thinking they don’t need it yet. It’s one of those things you hope not to use anytime soon, but it’s meant to support your loved ones financially if something happens to you. Waiting too long to get life insurance, though, can end up costing you more. Whether you’re looking out for your kids, your partner, or another family member, having a policy in place can bring peace of mind. When you’re ready to look into it, it’s important to understand the different types of life insurance available.

Term Life Insurance

Term life insurance is one of the most popular and affordable types of life coverage. It lasts for a set period of time, and your beneficiaries only receive the payout if you pass away during that timeframe. It usually requires a minimal medical check compared to other types of insurance.

To stay covered under term life insurance, you’ll need to keep up with your payments—if you miss them, the policy could lapse. When the term ends, you might be able to renew it, though the terms could change. In some cases, you can even upgrade to a more comprehensive policy. The process doesn’t have to be complicated—you can even get immediate coverage with no medical exam, depending on the provider.

Whole Life Insurance

Unlike term life insurance, whole life insurance guarantees a payout for your loved ones no matter when you die. You’ll pay ongoing premiums, which are fixed to the term you negotiated. A portion of your premiums goes into a nontaxable cash value account passed on to your beneficiaries.

This is the most basic form of permanent life insurance, allowing you to ensure a safety net for your loved ones without having to renegotiate terms down the line. Should the policy lapse, you may be able to collect some of the cash value account. Be sure to do your research to decide if this plan is right for you.

Universal Life Insurance

This is a similar policy to whole life insurance and covers your entire life, but it doesn’t come with the fixed premiums of whole life plans. This means that as circumstances change, your policy rates could rise or lower based on the condition of your health. The increased flexibility means you can affect the terms of the policy, but it also means you should pay special attention to what you sign. This policy is rather strict on payment, so you don’t want to miss any payments to avoid coverage interruptions or fees.

Final Expense Insurance

Suppose you don’t want to commit to an expensive life insurance policy but want to ensure your loved ones don’t incur any hefty bills for your burial. In that case, final expense insurance is a simple solution. This is a limited insurance plan that only covers your burial costs and other associated expenses. It is also easier to get approved for than some other plans.

Funerals can be a huge unexpected expense, so this can be a major relief to loved ones. It offers the lowest premiums of any full-life policy. However, it doesn’t offer any other financial support to the beneficiaries and doesn’t invest any premiums.

Simplified Issue and Guaranteed Issue Insurance

These two options are ideal for anyone who doesn’t want to go through a medical examination. However, they come with higher premiums and less coverage. Simplified issue insurance is ideal for anyone who needs to obtain life insurance in a hurry with few questions asked and is willing to pay for it.

Guaranteed issue life insurance is similar, but while simplified issue insurance may have some health questions, guaranteed issue is simply pay-to-play. You pay the premiums, and they promise you coverage. These are ideal options for anyone who has been deemed ‘uninsurable’ for other factors.

Group Life Insurance

While couples can buy joint insurance policies under all these other options, some businesses offer larger options. Bought in bulk, usually with good rates, an employer or other organization usually provides these policies. Some employers may also pay some or all of the coverage costs depending on your contract. These are most often term insurance policies, and some may come with the option to upgrade to whole life at an additional cost.