Life insurance gets sold complicated, but the choice is usually simple: term for income replacement, whole life for estate planning, final expense for end-of-life costs.
Term life
You pay a low premium for a fixed period (typically 20 or 30 years). If you die during the term, your beneficiaries get the death benefit. If you outlive it, the policy expires and pays nothing. Best for: replacing income while kids are young / mortgage is being paid down.
Whole life
Lifelong coverage with a cash-value component that grows tax-deferred. Premiums are 8–12× higher than equivalent term. Best for: estate planning, business buy-sell agreements, leaving a guaranteed inheritance.
Final expense
Smaller policies ($10K–$50K) targeted at end-of-life costs (funeral, remaining medical bills). Often no medical exam, fast approval. Best for: adults 50+ without other coverage who want to leave a clean exit for family.
Products that usually don't fit
- Universal life with index-linked returns — sold heavily, complex, often underperforms claims.
- Variable life — investment risk on a life policy is rarely the right tool.
- Mortgage life insurance from your lender — almost always more expensive than equivalent term.