Best type of insurance

What insurance is best?

When choosing between term and whole life, consider these 3 factors:

  • the purpose of the insurance policy
  • how long will you need the insurance policy
  • the cost of the insurance policy

Whole Life Insurance is a life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against. As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest accumulate tax-deferred.

Term Insurance is the most affordable type of insurance when initially purchased and is designed to meet temporary needs. It provides protection for a specified period of time (the “term”) and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will end at a specific time in the future. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage. Terms vary from  5 – 40 years. 

Our carriers offer a variety of term life insurance policies which can be an affordable financial choice for many families. Particularly if:

  1. You need to replace your income for a specified period of time (for example, while raising children or paying off a mortgage).
  2. You want the most coverage at the lowest cost.
  3. You want a more streamlined and straightforward process.

People aged 50-80 who want to protect their loved ones from financial burdens after their passing, might consider a whole life final expense policy.  These policies generally have streamlined underwriting and offer coverage amounts from $5,000 to $40,000 and can be effective almost immediately. Once issued, the premiums will not increase and the face amount will not decrease.  The policies cannot be cancelled except for non-payment of premium.

For customers with significant medical issues, who might not qualify for standard whole life policies, Guaranteed issue whole life insurance may be right for you if:

  1. You have previously been declined for life insurance
  2. You thought you could not get life insurance due to your age or health
  3. You don’t want your family to have to worry about your final expenses

Guarantee issue policies typically have no health questions and are issued with minimal underwriting.  These policies normally have a 2 year waiting period before the full benefits are available.  If the insured dies before this 2 year waiting period, the policy would refund the premiums paid plus interest (5%-10%) to the beneficiary.  Some policies prorate the benefits, (30% the first year, 70% the second year) and then the full benefit amount after that.

If you have questions or would like to chat with one of our licensed professionals to find the right coverage for your situation, contact us by email at or by phone at 800-601-8650