What life insurance is
A contract in which the policy owner pays premiums and the insurer agrees to pay a death benefit to beneficiaries when the insured person dies, as long as the policy is in force and its conditions are met.
Life insurance
Life insurance, explained clearly.
Protect the people who count on you — and the plans you’re building together. Learn your options and get free, no-obligation information.
Why it matters
What life insurance can do for your family
Replace lost income
Help your family cover everyday bills if your paycheck stops.
Protect your home
Help pay the mortgage or rent so your family can stay put.
Keep goals on track
Help fund childcare, school and college plans.
Cover final expenses
Ease the cost of funeral expenses and outstanding debts.
Build cash value
Permanent policies can grow cash value you may access later.
Leave a legacy
Support the people and causes that matter most to you.
Know your options
Every family is different. Policies vary in features, cost and guarantees, so the best fit depends on your goals and budget — a licensed professional can help you compare.
The death benefit
The amount the insurer pays to the beneficiaries. It can be reduced by outstanding policy loans, withdrawals or unpaid premiums, depending on the contract.
Term life insurance
Coverage for a set period, such as 10, 20 or 30 years. It typically has lower initial premiums and no cash value. Coverage generally ends when the term ends unless renewed or converted.
Permanent life insurance
Designed to provide lifetime coverage as long as the policy stays adequately funded. It typically includes a cash value component and costs more than term for the same death benefit.
Universal life insurance
A flexible type of permanent insurance. Premiums can often be adjusted within limits. The insurer credits interest to the cash value, subject to any minimum guaranteed in the contract.
Indexed Universal Life (IUL)
Universal life where credited interest is calculated using the performance of an external market index, subject to caps, participation rates and floors. The money is not invested directly in the market.
Beneficiaries
The people or entities you name to receive the death benefit. Keeping beneficiary designations up to date after life events — like marriage or a new child — is important.
Exclusions and limitations
Policies can exclude certain causes of death or limit benefits in some situations, such as during an initial contestability period. These are spelled out in the contract.
Compare
Common policy types at a glance
| Term Life | Whole Life | Universal Life | Indexed Universal Life | |
|---|---|---|---|---|
| Coverage period | A set number of years | Lifetime, if premiums are paid | Can be lifetime, if adequately funded | Can be lifetime, if adequately funded |
| Premiums | Usually level for the term | Usually fixed | Flexible within contract limits | Flexible within contract limits |
| Cash value | Typically none | Yes | Yes | Yes |
| How cash value grows | — | Per the contract; some policies may pay dividends, which are not guaranteed | Interest set by the insurer, subject to any contractual minimum | Interest linked to an index formula with caps, participation rates and floors |
| Main considerations | Coverage can end; renewing later may cost more | Higher premiums; less flexibility | Underfunding or rising charges can cause lapse | Complex; charges continue; illustrated values not guaranteed |
General, simplified descriptions. Specific features, guarantees and costs depend on the policy contract.
Before you decide
Questions to Ask Before Choosing a Policy
- 1What coverage do I need?
- 2How much can I afford over time?
- 3What charges apply?
- 4What happens if I change my premium payments?
- 5Are any policy values guaranteed or illustrated?
- 6What exclusions and limitations apply?
- 7What are the conditions for loans and withdrawals?
- 8What happens if the policy becomes underfunded?
Frequently asked questions
Ready to protect what matters most?
Get free information and talk with an appropriately licensed professional about the coverage that fits your family. No cost, no obligation.
Educational information only, not an offer of insurance. Coverage, cost and approval depend on the insurer, the policy and your circumstances.