Which life insurance policy is right for me?

Types of life insurance

Term Life Insurance

A term life insurance policy covers you for a set period of time, usually during your working years. Its primary purpose is to replace your loss of income and cover your dependents’ living expenses if you pass away during the period of time you are insured.  

Term Life

Short Term Life

Term Life

Short Term Life

Permanent Life Insurance

A permanent life insurance policy covers your whole life and will not expire. Because permanent policies cover the duration of your life, premiums are usually more expensive than for a term life policy, however, permanent life insurance policies accrue a cash value that you can borrow tax-free later.

Final Expense

Whole Life

Universal Life

Final Expense

Whole Life

Universal Life

What's the difference between whole life and final expense insurance?

Both final expense and whole life insurance fall into the permanent life insurance category. This means that the benefits never expire and build a cash value. However, these policies differ in a few ways:

Purpose – One of the primary reasons for a whole life policy is wealth transfer while final expense policies are meant to specifically cover end-of-life costs.
Death benefit – Whole life policies typically have a significant death benefit while the average final expense policy usually maxes out at around $20,000.
Premium cost – Since final expense insurance has a lower death benefit, its premiums are often less expensive than whole life policy premiums.
Medical exam requirement – Final expense policies do not require a medical exam, making them accessible to a wider range of people than whole life insurance.

Learn more about Final Expense coverage

Which life insurance policy is right for me?

Permanent vs. Term

The main difference between permanent and term life insurance is the duration of the coverage. If your primary reason for getting life insurance is to help cover the costs of those who rely on your income, term life insurance would likely be the right fit. However, if you want to ensure your beneficiaries receive a payout regardless of when you pass or if you would like your policy to grow in cash value, permanent life insurance might be a better fit.

	What need does it serve?	What does it typically cover?	Benefits	Who needs it?	Death Benefit	Policy Length/ Term	Premium	Cash Value	Options	Medical Exam Required?
Term Life	Income replacement during working years	Lost income and living expenses including: Mortgage payments, funeral and burial costs, school tuition, debt	Lower Costs with fixed term More Coverage Flexible Policy Length Guaranteed Death Benefit Fixed Premium Fixed Premium	Wage-earners who have dependents that rely on their income	Guaranteed	10 to 30 Years	Fixed	None	Level Term Renewable Term Convertible Term Credit Term Decreasing Term Group Term Return of Premium Term Adjustable Premium Term Child Term Rider	Typically required
Final Expense	Payment for end-of-life expenses	Funeral Costs, Hospital Bills, Outstanding Legal and Credit Card Bills	Guaranteed Benefit Permanent Policy No Medical Exam Fixed Premium	Those planning for end-of-life expenses	Guaranteed	For Life	Fixed	Accrues	Simplified Issue Guaranteed Issue Pre-Need Insurance	Not required
Short-Term Life	Temporary coverage	Lost income and living expenses	Convenient Gap Coverage Affordable Premiums	Those who will have a gap in coverage or need more coverage over a short period of time	Guaranteed	1 Year	Fixed	None	Annual Renewable Term Temporary Life	Not required
Universal Life	Wealth transfer, income protection and tax-deferred wealth accumulation	Lost income, living expenses, debt, funeral costs, school tuition	Permanent Policy Cash Value Flexible Premiums Tax Benefits	Those that want a flexible permanent plan	Flexible	Flexible; generally for Life	Flexible	Accrues	Traditional (Non-Guaranteed) Indexed Universal Variable Universal No Lapse Guaranteed	Typically required
Whole Life	Wealth transfer, preservation and tax-deferred wealth accumulation	Lost income, living expenses, debt, funeral costs, school tuition	Permanent Policy Cash Value Guaranteed Death Benefit Fixed Premium Tax Benefits	Those who want predictable premiums and benefits	Guaranteed	For Life	Fixed	Accrues	Indexed Whole Life Variable Whole Life Limited Payment Modified Whole Life Single Premium Joint Life Insurance Child Life Guaranteed Issue Simplified Issue	Typically required

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