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 Michigan, life insurance is regulated under both state statutes and federal law. The Michigan Department of Insurance and Financial Services (DIFS) oversees the insurance industry in the state, ensuring that insurance carriers comply with state regulations designed to protect policyholders. Life insurance policies are contracts between an insurer and a policyholder, where the insurer agrees to pay a designated beneficiary a sum of money upon the death of the insured person or after a set period. The main types of life insurance available include term life insurance, which provides coverage for a specific term, and whole life insurance, which offers coverage for the insured's entire lifetime and typically includes a savings component. Other products like universal life, variable life, and various hybrid policies offer different combinations of investment options and flexibility in premiums and death benefits. Specific regulations regarding life insurance policies in Michigan address issues such as policy requirements, consumer disclosures, claims handling, and the licensing of insurance agents. Consumers are encouraged to review policy terms carefully and consider consulting with an attorney to understand the implications of the different types of life insurance products available.