Term Life Insurance
Coverage for a set period—often chosen to protect income, a mortgage, or children during the years they depend on you most.
- Usually lower initial premiums
- No cash-value account
- Coverage ends or renews after the term
- May offer a conversion option
Often considered for: income replacement, debts, mortgages, and time-limited needs.
Whole Life Insurance
Coverage designed to remain in force for life when required premiums are paid, with a cash-value component that can grow over time.
- Lifetime coverage if kept in force
- Generally level premiums
- Builds cash value
- Typically costs more than term coverage
Often considered for: lifelong needs, final expenses, legacy goals, and cash-value features.
You may not have to choose only one.
Some families use a combination of term and permanent coverage to balance protection, duration, and budget. A personal conversation can make the tradeoffs clear.
Talk through your options →Know the language
Common insurance terms
- Premium
- The amount paid to keep a policy in force.
- Beneficiary
- The person or entity designated to receive the death benefit.
- Death benefit
- The amount the policy pays to beneficiaries when a covered insured dies.
- Cash value
- A value component found in certain permanent policies that may grow over time.
- Underwriting
- The insurer’s process for evaluating eligibility, health, risk, and pricing.
- Rider
- An optional policy feature that adds or changes benefits and may increase cost.
This overview is educational and does not describe every policy type, feature, limitation, or cost. Policy terms vary by insurer and state.