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 South Carolina, life insurance is regulated under state law and overseen by the South Carolina Department of Insurance. The regulations ensure that life insurance policies are sold in a fair and transparent manner, providing protections to policyholders. Life insurance policies in South Carolina 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 life while also building cash value. Other types of life insurance products available include universal life, variable life, and various specialized policies like mortgage life insurance or credit life insurance, each with unique features to meet different needs. Insurers in South Carolina are required to follow strict guidelines regarding policy terms, premium rates, and the claims process. Policyholders have a grace period for late payments and are entitled to a 'free look' period to review a new policy. Additionally, there are consumer protections in place, such as the guarantee of death benefits and cash surrender values, should an insurance company become insolvent. It's important for consumers to understand the specific terms and conditions of their life insurance policy and to consider their long-term financial needs when choosing a policy.