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 Montana (MT), life insurance is regulated under state law and overseen by the Montana Commissioner of Securities and Insurance. The regulation of life insurance policies includes ensuring that insurance providers are licensed to operate in the state, that the policies they offer comply with state statutes, and that they engage in fair practices. Life insurance policies in Montana can be categorized into term life insurance, which provides coverage for a specific period, and whole life insurance, which offers coverage for the policyholder's entire lifetime. Other variations such as universal life, variable life, and various hybrid policies offer different investment options and flexibility in premiums and benefits. Specific regulations govern the sale of life insurance, including disclosure requirements, policy provisions, and consumer protections. For instance, Montana has a 'free look' period that allows policyholders to cancel a new life insurance policy within a certain timeframe without penalty. Additionally, insurers must pay out death benefits promptly upon the policyholder's death, provided the claim is valid and there are no disputes. It's important for consumers to understand the terms and conditions of the life insurance product they are considering and to consult with an attorney or a licensed insurance agent for advice tailored to their individual needs.