Most families need one or two of these, not all four. Here's what each one is, who it's for, and what people usually ask, with no pressure to pick anything today.
Term life is the simplest kind of life insurance. You pay a monthly amount for a set period, usually 10, 20, or 30 years, and if you die during that time, the people you name receive a payout, generally free of income tax. If you outlive the term, coverage ends. That's why it costs the least: you're only paying for the years your family depends on you. Several of the companies we work with can approve healthy applicants without a medical exam, sometimes the same day.
Coverage ends. Some policies can renew, convert to permanent coverage, or return the premiums you paid. We'll tell you which options a policy has before you buy it.
Mortgage protection is term life insurance shaped to your mortgage. The coverage matches what you owe, so if you die before the house is paid off, the payout can settle the balance or keep up the payments. Your family keeps the home without needing your income to do it. Some policies also pay if a serious illness or disability stops you from working, and some return your premiums if you outlive the term.
Most people qualify by answering health questions, with no exam.
Whole life insurance lasts as long as you live. The price is set when you buy it and never goes up, and the policy builds cash value you can use during your lifetime. Final expense is a smaller whole life policy, usually enough to cover a funeral and any bills left behind.
Usually not. Health requirements are easier than most people expect, and conditions that block other coverage often don't block this.
Indexed universal life (IUL) is permanent coverage with a savings component tied to a market index. In years the index rises, your cash value can grow. In years it falls, your cash value doesn't drop with it. An annuity works from the other direction: you put savings in, and it pays you a guaranteed income for the rest of your life. Both involve real trade-offs and costs, so we start by showing you an illustration with actual numbers, not a pitch.
Your cash value doesn't fall with the index, but policy loans and withdrawals accrue interest and reduce the payout. The illustration shows you the real numbers first.
| Term life | Mortgage protection | Whole life / final expense | IUL | |
|---|---|---|---|---|
| Pays your family if you die | ✓ | ✓ | ✓ | ✓ |
| How long it lasts | 10 to 30 years | Length of the mortgage | Your whole life | Your whole life |
| Builds savings you can use | No | No | Yes | Yes |
| What it costs | The least | Low | Set once, never goes up | Flexible |
| Best if you want | Your income replaced | The house kept | A funeral handled in advance | Tax-advantaged growth |
Not sure which column is you? That's normal. See your options online or call (586) 980-1150.