Here's everything you need to know about the different types of life insurance policies, how they work, and what they cost. Unlike term life insurance, which is relatively straightforward, permanent life insurance includes several sub-types, including whole life, universal life, and variable life. Under the universal life umbrella, two other types of life insurance exist: indexed and variable. Read more: Your complete guide to life insuranceTypes of life insurance FAQsWhat is the most common type of life insurance? About 55% of working adults reported having life insurance through an employer, according to the 2025 Insurance Barometer Study from LIMRA and Life Happens.