Life insurance is a contract in which a policyholder pays regular premiums in exchange for a lump-sum death benefit paid to the policyholder's beneficiaries. The lump-sum benefit is paid when the policyholder either passes away or a specific amount of time has passed. Life insurance policies can provide financial security for surviving family members by replacing lost income and covering expenses.

There are a number of different types of life insurance policies (sometimes referred to as products)—all of which generally fall under the categories of term life insurance and whole life insurance. The names and terms of different life insurance products in these two categories vary from one insurance company to another.

Some examples of life insurance products include:

• term life insurance

• whole life insurance

• universal life insurance

• indexed universal life insurance

• guaranteed universal life insurance

• variable life insurance

• variable universal life insurance

• hybrid life insurance with long term care

• group life insurance

• mortgage life insurance

• credit life insurance

• joint life insurance

• simplified issue life insurance

• guaranteed issue life insurance

• accidental death and dismemberment insurance

In Arkansas, life insurance is regulated under state law and overseen by the Arkansas Insurance Department. The state statutes and regulations ensure that life insurance policies are sold and administered in a manner that protects consumers. Life insurance policies in Arkansas include term life insurance, which provides coverage for a specific period, and whole life insurance, which offers coverage for the insured's entire lifetime. Other types of life insurance available in Arkansas include universal life, variable life, and various specialized policies like mortgage life insurance and credit life insurance. Insurers in Arkansas are required to provide clear information about the terms and costs of policies, and they must maintain solvency to meet their financial obligations to policyholders. Additionally, Arkansas has a 'free look' period, typically allowing policyholders a certain number of days to review a new life insurance policy and cancel it without penalty. Beneficiaries are entitled to receive the death benefit tax-free, and there are consumer protections in place, such as a grace period for late payments and regulations regarding policy lapses and reinstatements.