Life insurance is how you make sure the people who count on you are okay if you’re not there. It doesn’t have to be complicated or expensive. Here’s a plain-English look at the main types and how to decide what you need.
The main types of life insurance
- Term life: covers you for a set period, like 10, 20, or 30 years. It’s the most affordable way to get a large amount of coverage while your kids are young or your mortgage is big.
- Whole life: lasts your entire life and builds cash value over time. It costs considerably more for the same death benefit.
- Universal life: permanent coverage with more flexible premiums and death benefits.
- Final expense: smaller whole life policies designed to cover funeral costs and final bills, often with simplified health questions.
Not sure which fits? Read term vs. whole life, explained and how much life insurance you actually need.
Quick tips
- Coverage through work is a good start, but it’s often only one or two times your salary and may not follow you if you change jobs.
- Rates are based largely on age and health, so buying sooner usually costs less.
- Review your beneficiaries after marriage, divorce, or a new baby.
- Consider coverage for a stay-at-home parent. Replacing childcare and household work costs real money.
Life insurance guides
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How Much Life Insurance Do You Need? A Simple Way to Estimate
Skip the sales pitch. Here’s a simple way to estimate how much life insurance your family needs, with a worked…
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Term vs. Whole Life Insurance: A Plain-English Comparison
How term and whole life insurance work, what they cost, and who each one tends to fit.
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