What is life insurance?
Purchasing life insurance allows you to provide a safety net for your loved ones in case you pass away. A life insurance policy is a contract stating that, as long as your premium is paid and the policy is active when you die, your beneficiaries can receive a death benefit payout to be used however they like — for final expenses, paying off outstanding debt, and even everyday costs.
Types of life insurance products
Life insurance policies generally fall into three categories: term, permanent, and final expense. Once you understand the difference, you can easily determine which is right for your beneficiaries' needs and your budget.
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Term policies last a set timeframe (1, 10, 15, 20, or 30 years) and are affordable. They're typically for supporting your loved ones in case you pass away unexpectedly.
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Permanent policies last your entire lifetime, have cash value that grows, and are more expensive.
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Final expense policies are a more affordable type of permanent life insurance with a lower death benefit that's designed to cover your end-of-life costs.
Term life insurance
Term. Popular and affordable, traditional term life insurance is for protecting your loved ones in case you pass while they still depend on your income. Get coverage for 10, 15, 20, or 30 years.
Final expense insurance
Final expense. Also known as burial insurance, it's designed to cover your funeral, health care bills, and other costs after you pass away. It's an affordable policy with no medical exam.
Short-term life insurance
Term. Starting out with life insurance or have a temporary need? This unique policy provides one year of inexpensive coverage. There's no medical exam so you can quickly get a policy online.
Whole life insurance
Permanent. The most popular permanent policy, whole life provides coverage for your entire life at a fixed premium. Plus, it builds cash value at a fixed rate over time, which you can borrow from
Which life insurance policy is right for me?
Consider your budget and your reasons for getting life insurance when determining which type of life policy is best for you. Do you want to make sure your income is replaced in case you die before you retire? Or do you need coverage no matter when you pass?
Talk to our insurance experts to help guide you through the process so you can make the best choice for you and your loved ones.
