The simplest form of life insurance is term life insurance.  Term insurance is most often used for mortgage protection, and with people that are younger.  It is purchased for a specific term.  At the end of the term, you can keep the policy, but the premiums are no longer guaranteed and will go up each year.

Whole life insurance is like term life insurance, except for the term and the price.  It is purchased to cover you for your whole life, and the term is guaranteed to stay the same until you die.

Universal life insurance is like whole life because it’s meant to cover you for your whole life.  It builds up cash value, and you can borrow against the cash value or withdraw it at different times in your life.  This type of life insurance is a little more complicated.  To get a policy that works right for you, you need to speak with an agent and have a clear idea of what you want.  They’ll direct you toward the correct policy.

Return of premium life insurance is normally a term policy that refunds all of your premiums at the end of the term.  It can be a good investment if purchased for 20 or 30 years, but normally isn’t worth the extra cost if only purchased for 10 years.  (It would make more sense to get term insurance and invest the difference, even if the return on the investment isn’t that great.)

Guaranteed issue life insurance is a type of life insurance where the issuance of the policy is guaranteed.  In other words, if you apply for the policy, you get it no matter what.  Most policies require underwriting, but this policy does not.  It is often the most expensive form of life insurance because it carries the most risk.

In most cases, term life insurance is the best bet, especially if you are getting the insurance to cover debt in the case of your premature death.  Whole life is generally used because of the cash acumulation options, and also because it can cover you until age 100 or even later.