Life Insurance

Start With What the Money Is For

Before you compare policies, answer one question: what should this money do if you die? Replacing your income while your kids are growing up is a different job from paying for a funeral or leaving something for your grandchildren. The right policy depends on the job, and I’d rather educate you on what each one does, so you can make the right decision for your family.

Term Life

Term covers you for a set number of years, then ends. It generally gives you the most coverage for your money up front, and it usually has no cash value. It suits a need with an end date, such as raising kids. If you outlive the term, the coverage stops, and buying more later will cost more or may not be possible.

Whole Life

Whole life is meant to last your entire life, with level premiums and a cash value that builds under the terms of the contract. It costs more than term for the same coverage. It suits a need that lasts as long as you do, such as leaving money to your family or covering final costs.

Universal Life

Universal life is also permanent, with more flexibility in what you pay and when. That flexibility cuts both ways: pay in too little, and the policy can run short and lapse. Indexed universal life is a version that ties its interest partly to a market index.

Final Expense

Final expense is a small permanent policy meant to cover a funeral, final medical bills and other costs your family would otherwise pay. Many have simpler health questions than a larger policy. Some pay a reduced amount if you die in the first couple of years, so ask about that before you buy.

Paying for What You Need

You should have the policy that does the job. I’m not going to push.

Life insurance guarantees depend on the financial strength and claims‑paying ability of the issuing insurance company. Coverage is subject to underwriting and the terms of the policy.