Life Insurance Series

Life · Types

Six Types of Life Insurance —
What Each Does

The term-vs-whole conversation oversimplifies. Within "permanent" there are several flavors, each with different cost structures, growth potential, and use cases. Here's the lineup.

Term Life

Coverage for a fixed period (10, 20, 30 years). Cheapest by far.

Key points

Lowest premium per dollar of coverage

Expires with no cash value if you outlive it

Most common conversion option to permanent

Best for young families with mortgages

Best for

Income replacement during peak family financial years

Whole Life

Permanent coverage with guaranteed cash value and fixed premiums.

Key points

Premiums never increase

Guaranteed cash value growth

Dividends possible from mutual carriers

Used for estate planning + tax-advantaged savings

Best for

Estate planning, legacy goals, and forced savers

Universal Life

Flexible permanent coverage — adjust premiums and death benefit over time.

Key points

Adjustable premiums and death benefit

Cash value tied to interest rates

Can be underfunded → policy lapse risk

More flexible than whole life, less guaranteed

Best for

People wanting permanent coverage with flexibility

Indexed Universal Life (IUL)

Cash value tracks a market index (like S&P 500) with floors and caps.

Key points

Cash value growth tied to market index

Has a floor — usually 0% in down years (no losses)

Cap on upside — typically 8-12% annually

Used for tax-advantaged retirement income

Best for

High earners wanting market-like returns with downside protection

Variable Life

Permanent coverage with cash value invested in subaccounts (like mutual funds).

Key points

Cash value can grow significantly OR lose value

More risk than whole life or IUL

Requires a securities license to sell

Less common in current market

Best for

Risk-tolerant investors comfortable with market exposure

Final Expense

Small whole-life policy ($5K-$50K) designed to cover funeral + final bills.

Key points

Smaller death benefit, simpler underwriting

Often guaranteed issue for older applicants

Higher per-dollar cost than larger policies

Premiums never increase, coverage doesn't expire

Best for

Seniors who didn't get life insurance earlier — covers funeral costs

Not sure which type fits?

We'll match the right product to your goal — protection-only term, IUL for tax-advantaged income, whole life for legacy. No one-size-fits-all answers.

Carriers We Represent

We're independent — we shop the market for the policy that fits, not the highest commission.