Life
The Different Types of Life Insurance
By Jared Sharp ·
Life insurance is one of the most important financial tools you can have, but with several policy types available it's easy to get confused. Here's a simple breakdown.
1. Term life
Coverage for a set period, often 10, 20, or 30 years. Lower cost and straightforward — great for temporary needs like a mortgage or a child's education. No payout if you outlive the term, and no cash value.
2. Whole life
Permanent coverage with a guaranteed death benefit, fixed premiums, and cash value that grows over time. Costs more than term, but never expires while premiums are paid.
3. Universal life
Permanent coverage with flexible premiums and an adjustable death benefit. Cash value growth is tied to interest rates or an index, which adds upside and some variability.
4. Final expense
Smaller permanent policies designed to cover funeral costs and outstanding bills, usually with simplified underwriting and no medical exam.
The right answer depends on your budget, your dependents, and how long you need protection. We're happy to model a couple of options side by side.