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 Colorado, life insurance is regulated under state law and overseen by the Colorado Division of Insurance. The regulation of life insurance policies includes ensuring that insurance companies are financially solvent, policies are sold by licensed agents, and the terms of the policies are fair and clearly stated. Term life insurance provides coverage for a specific period, while whole life insurance offers coverage for the policyholder's entire life, typically including a savings component. Other types of life insurance, such as universal life, variable life, and various hybrid policies, offer different combinations of investment options and flexibility in premiums and death benefits. Colorado law requires that life insurance policies include a 'free look' period, allowing policyholders to cancel within a certain timeframe after purchase without penalty. Additionally, there are protections in place for policyholders regarding policy lapses and the timely payment of claims. It's important for consumers to understand the specific features and provisions of the life insurance product they are considering, as well as any exclusions or limitations, and they may wish to consult with an attorney or financial advisor to ensure that the product meets their needs.