Term Life Insurance

Term life insurance lasts for a specified number of years and then ends. You choose the term when you take out the policy, with common terms being 10, 20, or 30 years. The best-term life insurance policies balance affordability with long-term financial strength.

• Decreasing Term Life Insurance: This is renewable term life insurance where the coverage decreases over the life of the policy at a predetermined rate.
• Convertible Term Life Insurance: This allows policyholders to convert a term policy to permanent insurance.
• Renewable Term Life Insurance: This is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and it is usually the least expensive term insurance initially.

Term life insurance is attractive to young people with children because parents can obtain large amounts of coverage at reasonably low costs. Upon the death of a parent, a significant benefit can replace lost income.

These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.

Term life insurance is for a predetermined period, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated based on the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. The holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.

Whole Life Insurance

Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.

Whole life insurance policies are one type of permanent life insurance. Universal life, indexed universal life, and variable universal life are others. Whole life insurance is the original life insurance policy, but it does not equal permanent life insurance as there are many types of permanent life insurance.

Universal life insurance and whole life insurance are both permanent life insurance types that offer guaranteed death benefits for the life of the insured. However, a universal life policy allows the policyholder to adjust the death benefit as well as the premiums. As one might expect, higher death benefits require higher premiums. Universal life policyholders can also use their accumulated cash value to pay premiums, provided the balance is sufficient to cover the minimum due. Whole life insurance, alternatively, does not allow for changes to the death benefit or premiums, which are set upon issue.

Universal Life Insurance

Universal life (UL) insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum payment) or fixed premiums (scheduled fixed payments).

Unlike term life, UL insurance policies can accumulate interest-bearing funds like a savings account. Additionally, policyholders can adjust their premiums and death benefits. Those paying extra toward their premium receive interest on that excess.

If you want to build tax-deferred savings and don’t expect to tap into the funds for a long time, universal life may be a suitable option. The cash value option that’s part of a universal life policy may be available for you to withdraw or borrow against in an emergency.

It’s a good idea to talk with your insurance provider to better understand your life insurance options. They can help you review your personal situation and long-term goals to choose a policy that’s a good fit for you and your family.

Guaranteed Universal Life Insurance

Guaranteed universal life insurance (GUL) is a type of permanent life insurance that combines the affordability of term life with the permanence of whole life. It offers fixed premiums and guaranteed death benefits up to a specific age, such as 90, 95, or even 121. While it lacks the strong cash value component found in other permanent policies, its predictability and lower cost make it an appealing option for those seeking long-term protection without the investment risks.

GUL is ideal for individuals who want lifelong coverage at a stable cost, particularly for estate planning or leaving an inheritance, without the concern of managing a fluctuating policy or market-based cash value.

Life Insurance with Living Benefits

Life insurance with living benefits provides policyholders access to a portion of their death benefit while they are still alive under specific conditions. These typically include being diagnosed with a terminal illness, critical illness, or experiencing a chronic medical condition that limits daily living activities.

Living benefits offer peace of mind by helping cover medical costs, long-term care, or lost income during a serious illness. This type of policy is especially helpful in offering financial flexibility during a time when it’s most needed, without having to wait for the death benefit to be paid to beneficiaries.

If you’re looking for a safety net that supports both your family after death and you during life-threatening situations, a policy with living benefits may be worth considering.

What is Final Expense Insurance?

Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance designed to cover end-of-life expenses. These can include funeral costs, medical bills, or other outstanding debts. It’s an affordable option for individuals who want to ease the financial burden on their loved ones during a difficult time.

Who Should Consider Final Expense Insurance?

This policy is ideal for seniors, individuals with limited savings, or anyone who wants to leave their family with peace of mind. It is especially useful for those who do not qualify for traditional life insurance due to age or health conditions.

How Does It Work?

Final expense policies typically have smaller death benefits ranging from $2,000 to $50,000. The beneficiary receives the funds tax-free and can use them however they see fit—whether for burial services, cremation, outstanding bills, or a memorial ceremony.

Benefits of Final Expense Insurance

• No medical exam required (in most cases)
• Affordable premiums
• Quick approval process
• Guaranteed death benefit
• Flexible use of payout funds

How to Apply

Applying for final expense insurance is simple. Most companies offer a quick application with basic health questions. You can apply online, over the phone, or in person with a licensed agent.

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Secure your family’s future and avoid unexpected expenses. Contact us now for a free, no-obligation final expense insurance quote tailored to your needs.