TYPES OF LIFE INSURANCE

Each type of life insurance serves different needs and financial goals, from providing short-term coverage to ensuring lifelong protection and financial security for beneficiaries.

Term Life Insurance

  • Coverage Period:

    Provides coverage for a specific period (e.g., 10, 20, 30 years).

  • Premiums:
    Generally lower and fixed during the term

  • Payout:

    Pays a death benefit only if the insured dies during the term.

  • Purpose:

    Ideal for temporary needs, such as covering debts, replacing lost income, or protecting dependents during critical years.

Whole Life Insurance

  • Coverage Period:

    Lifetime coverage, as long as premiums are paid.

  • Premiums:
    Fixed and generally higher than term life insurance.

  • Payout:

    Provides a death benefit and accumulates a cash value that grows over time.

  • Purpose:

    Suited for long-term financial planning, estate planning, or leaving a legacy for heirs.

Final Expense

  • Coverage Purpose:

    Designed to cover the costs of funeral and burial expenses, outstanding medical bills, or other end-of-life expenses.

  • Premiums:
    Fixed and often affordable, with premiums based on the insured’s age, health, and chosen coverage amount.

  • Medical Exam: Usually, no medical exam is required, making it accessible to seniors or those with health concerns. Acceptance is often guaranteed.

  • Policy type: Usually a type of whole life insurance, offering lifetime coverage with a small cash value component.

  • Payout:

    Provides a lump-sum payment upon the insured’s death, which can be used for final expenses. The beneficiary has discretion over how the funds are used.

  • Purpose:

    Ideal for those who want to ensure their funeral and related expenses are covered, reducing financial strain on their loved ones.