The two basic types of life insurance are term life and permanent life insurance. Term life insurance provides coverage for a specific period such as ten years or to a specified date. Conversely, permanent life provides insurance coverage for the remainder of your life. Term life policies provide death benefits to your family in the event of an accident that results in your untimely passing while permanent life insurance policies provide death benefits at your eventual passing. Permanent life insurance policies remain in effect for as long as you continue to pay premiums or until you cancel the policy while term policies lapse at the end of the covered period. Often, term life policies lapse without a benefit payout because the insured outlives the policy. Since an untimely passing is less likely than an eventual passing; term life is less expensive than a permanent life policy.