Life insurance education
Understand Your Life Insurance Options
Life insurance policies are designed for different financial needs. Some focus on providing coverage for a specified period, while others may provide lifelong coverage if the policy remains in force and its conditions are met. Learning the differences can help you determine which options are worth exploring.
Type 1
Term Life Insurance
Term life insurance generally provides coverage for a specified period. If the insured person dies during the covered term and the claim meets the policy conditions, a death benefit may be payable. Term life may be considered by people seeking income protection or financial support for dependents during a defined period.
Type 2
Permanent Life Insurance
Permanent life insurance is designed to provide coverage over a longer period, potentially for the insured person's lifetime, provided the policy remains in force under its terms. Certain types may build cash value, but features, costs and guarantees vary.
Type 3
Final Expense Life Insurance
Final expense life insurance generally focuses on providing a relatively modest death benefit that beneficiaries may use toward funeral and other final expenses.
Learn more →How Should You Compare Policies?
- The amount and duration of coverage
- Total premiums over time
- Whether premiums are fixed or may change
- Cash value features, if applicable
- Eligibility and underwriting requirements
- Waiting periods and exclusions
- The financial strength and licensing of the insurer
- Whether the policy fits your budget and existing coverage
Before replacing a policy
Do not cancel an existing policy until you have reviewed any replacement carefully and confirmed that the new coverage is in force. A new application may be declined, delayed or issued on different terms.
Keep learning before you decide
This content is general information, not a recommendation to purchase a particular policy. For an individualized assessment, consult an appropriately licensed insurance professional.
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