Compare Car
Insurance Quotes
Find a match to start saving on insurance
Provide basic details
Receive a side-by-side comparison
Make the right pick
Protect yourself and your family's future from the unforeseen
Life insurance policies help ensure that your loved ones are financially protected after you pass. Each policy includes a death benefit. If you pay your premiums, your chosen beneficiaries get the death benefit, which they may use to pay off debts or for any other purposes.
To avoid paying too much for life insurance, you should take the time to compare quotes from several different insurance companies. You can review prices for policies with the coverage options you want.
How to choose the right type of life insurance policy
Picking the best life insurance policy depends on a variety of factors, including your age, health, family, debts, and other details. However, you should first review some of the most common types of policies.
Let’s compare the main categories of life insurance policies to help narrow your choices.
Term life insurance
Term life insurance is an insurance policy with a contract length of 10 to 30 years. It’s often best for:
- Younger adults
- Those with a large mortgage
- Young families
Compared to other types of life insurance, term life is often more affordable due to the limited contract length. You can get a larger death benefit without spending as much, which may help cover debt such as a mortgage. It’s a good fit for those wanting affordable coverage for a specific period.
For example, you’re a married person in your early thirties with two young children and $200,000 left on your mortgage. You can get a 20-year term life policy with $250,000 or more in coverage. This provides financial protection until your children are likely to have finished college while providing enough of a death benefit to pay off the mortgage and cover other costs, such as education.
Whole life insurance
A whole life insurance policy is a type of permanent life insurance, which means that it lasts for life. Instead of ending after 10 to 30 years, the policy stays in effect until you pass away. It’s often recommended for:
- Those who want lifetime coverage
- Maximum savings
- Conservative investors
Getting a whole life insurance policy may make more sense for those wanting guaranteed coverage for life. You may feel more at ease knowing that you have a policy in place to help care for your loved ones should you pass at any time.
Whole life policies also include fixed premiums and cash value accumulation. The cash value of your policy grows, and you may eventually be able to borrow from it.
For example, you have several dependents who are likely to rely on your income for life. Purchasing a whole life insurance policy ensures that they’re financially protected no matter what age you pass.
Universal life insurance
Universal life is another type of permanent life insurance. It’s good for life if you pay the premiums. Universal life insurance is often a good fit for:
- Those who want lifetime coverage
- Greater flexibility
- Aggressive investors
A universal life policy includes many of the same features as a whole life policy, including cash value accumulation. However, insurance companies invest your funds more aggressively. This creates a higher level of risk and greater potential for higher returns.
You also have the flexibility to adjust the death benefit and premiums to suit your current situation. This may appeal to those who want the highest level of flexibility from a life insurance policy.
For example, you have children and want to ensure that they’re covered whether you die young or live to an old age. Universal life can provide the coverage that you need and the flexibility to adjust your premiums. While it tends to cost more and comes with more risk, you’re financially secure and prefer the versatility of these policies.
Final expense insurance
Final expense insurance is a type of permanent life insurance policy typically marketed to seniors. It's often intended to cover burial expenses and other costs associated with finalizing an estate. Final expense insurance is recommended for:
- Seniors between 50 and 85 years old
- Covering funeral expenses
- Affordable permanent insurance
Final expense insurance often includes a lower maximum death benefit. You may not get enough coverage to pay off a large mortgage but can easily cover funeral costs. This also results in lower premiums, making it an excellent choice for those wanting a low-cost insurance option to cover the bare minimum expenses after their passing.
For example, you’re about a decade away from retirement and want to ensure that your family won’t need to cover your funeral expenses when you die. After calculating the potential cost of your burial and funeral, you can get final expense insurance to cover the amount needed.
Short-term insurance (one-year policies)
Some insurance companies offer short-term life insurance coverage with a contract length of just one year. This type of policy is well suited for:
- Those who want to test a life insurance policy
- Temporary insurance coverage
- Periods between insurance coverage
A one-year policy may work well for dealing with gaps between coverage, such as when switching jobs or dealing with a lack of coverage from your current employer.
For example, you’re in your 20s, married, and have one child. You’ve never had a life insurance policy before. Getting a one-year policy is affordable and allows you to test it out before committing to a longer contract or a permanent life insurance policy.
