Life insurance that fits your family

Types of life insurance

Term insurance lasts for a set number of years. Permanent insurance lasts your whole life. Here is how each type works and who it often fits.

• Term life

  Term life covers you for a set number of years, often 10, 20 or 30. If you pass away during the term, your family receives the death benefit. When the term ends, the coverage ends. Term life has no cash value. It usually costs less than permanent insurance for the same amount of coverage.

  Often fits: Parents, homeowners and anyone who needs a large amount of coverage for a set number of years.

• Whole life (final expense)

  Whole life covers you for your entire life as long as you pay your premiums. The premium stays the same. The policy also builds cash value at a rate set by the company. You can borrow against that cash value. Loans you do not repay reduce the death benefit.

  Many people choose a smaller whole life policy to cover final costs, such as funeral and burial costs and small debts. This is often called final expense insurance. Many of these policies ask few health questions, and some ask none. Some pay a reduced benefit in the first years, so we explain the terms before you apply.

  Often fits: People who want coverage that never expires and a fixed premium. Older adults, including people with health conditions, who want to cover end-of-life costs so their family does not have to.

• Mortgage protection

  Mortgage protection is life insurance chosen to cover a home loan. It is often a term policy with a length that matches your mortgage. If you pass away, the benefit goes to your beneficiary. Your family can use it to pay off the loan and stay in the home.

  What sets it apart from basic term life is living benefits. Many policies let you use part of the benefit early if you are diagnosed with a qualifying critical, chronic or terminal illness. That money can help you keep up with your house payments. Which illnesses count, and how much you can use, depends on the policy. Taking part of the benefit early usually lowers what your beneficiary receives later. We explain what each policy includes before you apply.

  Often fits: Homeowners whose family would struggle to make the payments without their income.

• Indexed universal life (IUL)

  Indexed universal life, or IUL, is permanent insurance with flexible premiums. Part of what you pay builds cash value. The company credits interest to that cash value based on a stock market index, such as the S&P 500. You do not invest in the index itself. Most policies limit the interest you can earn in a year. They also set a floor, often zero, so a down year does not erase your credited interest. Policy charges still apply. Cash value can fall if the policy does not have enough money in it, and growth is not guaranteed.

  Often fits: People who already have basic coverage in place and want lifelong protection with flexibility. IUL is more complex than term or whole life, so we go through the details with you.

At a glance

What to expect when you apply

Most people finish the steps in a few conversations.

1. Tell us about you. Share your age, health, tobacco use and goals. This takes a few minutes.
2. Compare options. We show quotes from carriers that fit and explain how they differ.
3. Apply. We help you complete the application with the carrier you choose.
4. Answer health questions. The carrier may ask for a phone interview, medical records or a short exam. Some policies need no exam.
5. Wait for a decision. The carrier reviews your application. This can take a few days to several weeks, depending on the policy.
6. Start your coverage. You pay your first premium and receive your policy. Most states give you a short review period after delivery to cancel for a refund.

Tip: Answer every health question fully and truthfully. Mistakes can lead to a denied claim later.