Life Insurance Products Explained

What it is: Term life provides a death benefit for a specific period — typically 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive the full payout tax-free.

How it works: You choose a coverage amount and term length. Premiums are locked in for the entire term, making it the most predictable and affordable type of life insurance.

Who it's for: Young families, new homeowners, anyone with a mortgage or dependents, and people who want maximum coverage at the lowest cost.

Typical cost: A healthy 30-year-old can typically get a $500,000 policy for $20–$35/month.

What it is: Whole life insurance provides permanent coverage that never expires, as long as premiums are paid. It also builds guaranteed cash value over time that you can borrow against.

How it works: Premiums are fixed for life and a portion of each payment goes into a cash value account that grows at a guaranteed rate. You can access this cash value through loans or withdrawals.

Who it's for: People seeking lifelong protection, estate planning, legacy building, or a conservative savings vehicle in addition to a death benefit.

Typical cost: A healthy 35-year-old can typically get a $250,000 policy for $150–$250/month.

What it is: Final expense (or burial) insurance is a smaller whole life policy designed to cover end-of-life costs like funeral expenses, medical bills, and outstanding debts.

How it works: Most final expense policies offer guaranteed or simplified acceptance, meaning little to no medical underwriting. Coverage amounts typically range from $5,000 to $50,000.

Who it's for: Seniors aged 50–85 who want to ensure their family isn’t burdened with funeral costs, medical bills, or other final expenses.

Typical cost: A 65-year-old can typically get a $15,000–$25,000 policy for $50–$100/month.

What it is: IUL is a flexible permanent life insurance policy with a cash value component linked to a stock market index (like the S&P 500), offering growth potential with downside protection.

How it works: Part of your premium goes toward the death benefit and part goes into a cash value account. The cash value earns interest based on index performance, with a guaranteed floor (typically 0–1%) and a cap on gains.

Who it's for: People who want permanent coverage with higher growth potential than whole life, plus flexibility in premiums and death benefit amounts.

Typical cost: Premiums vary widely based on age, health, and desired coverage. A typical policy might start at $200–$500/month.