Life Insurance Overview: What It Does and Which Type Fits
Life insurance pays a benefit to the people you name if you die while the policy is in force. This overview explains the main policy types, what they are generally used for, and how to work out how much coverage you may need.
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Why people buy life insurance
Most needs fall into a few groups. Your own mix decides the type and amount that make sense.
Replacing income
Helping your household keep up with living costs if your income stops.
Paying off debts
Covering a mortgage, loans or other debts so they don’t pass to your family.
Final expenses
Paying for funeral costs and final bills.
Leaving something behind
An inheritance, a gift to a charity, or estate and business planning.
The main policy types
Term covers a set period. Permanent policies are designed to last for life and usually build cash value.
Term Life
Coverage for a set period such as 10, 20 or 30 years. Usually the lowest premium for the death benefit. Learn more
Whole Life
Permanent coverage with fixed premiums and guaranteed cash value. Learn more
Universal Life
Permanent coverage with adjustable premiums and death benefit. Learn more
Indexed Universal Life (IUL)
Universal life with interest credits linked to a market index, subject to caps and floors. Learn more
Variable Life
Permanent coverage whose cash value is invested in sub-accounts and can go up or down. Learn more
Final Expense
Smaller whole life policies for end-of-life costs, often with simplified underwriting. Learn more
Mortgage Protection
Coverage sized to your mortgage balance and term. Learn more
How much coverage do you need?
A common starting point is the DIME method: Debts, Income replacement, Mortgage and Education, minus coverage and savings you already have. Our free needs analysis works through it with you.
Honest answers to common questions
Is coverage through work enough?
Group life coverage through an employer is often a multiple of salary and usually ends if you leave the job. Many people use it alongside an individual policy. A needs analysis shows whether there is a gap.
Which type is best?
No one type is best for everyone. Term often fits temporary needs such as income replacement and a mortgage; permanent coverage may fit lifelong needs. We explain the trade-offs for your situation.
What does the needs analysis cost?
Nothing. The review and quotes are free, and there is no obligation to buy. If you choose to buy a policy through us, the carrier pays us a commission — you do not pay us a separate fee.
Is coverage available in my state?
Availability depends on where you live and on our licensing and carrier appointments. If we cannot help in your state, we will tell you directly rather than pass your details on.
What happens to my information?
We use it to prepare your review and quotes and to contact you about your request. We never sell your information. See our Privacy Policy for details.
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