The terms and conditions of life insurance vary depending on the life insurance policy and the type of life insurance, according to HowStuffWorks. Life insurance is either term or permanent, and can be paid monthly, quarterly or annually.
Life insurance provides money to the policy's beneficiary if the policy owner dies, states HowStuffWorks. Life insurance companies ask applicants to provide their hobbies, credit history, driving record and travel history to determine the price of the policy. Since sex, age and pre-existing medical conditions also affect the price of life insurance, men and older people tend to pay more for policies. To receive compensation, the beneficiary must file an official claim that includes the time, date and location of death. In addition, most life insurance policies do not cover suicide.
The two main types of life insurance are term and permanent life insurance, according to HowStuffWorks. The major difference between them is that permanent life insurance usually includes a cash value; insurance companies invest premium payments into the account's cash reserves. Permanent life insurance policies are valid until the policy owner's death, but they are usually more expensive than term life insurance policies..
Term life insurance is only valid for a certain period, usually between 10 to 30 years, states About.com. Once the time period passes, the policy is no longer valid unless renewed. However, renewing term life insurance policies usually results in a higher cost due to older age.