A life insurance policy will pay a stated amount to a beneficiary upon the death of another. The death payment may be accelerated for a terminally ill insured in need of medical or living expenses (see the entry for ADB). The two major types of life insurance policies are Term Life and Whole Life. Term Life is valid for a predetermined period such as a year. Whole Life is until you die and usually involves periodic deposits in to an account that can be withdrawn before death.