Types of Life Insurance
Life Insurance That Grows With You
Because protecting your family’s future shouldn’t be confusing or overwhelming. Let’s make it simple.
A Path To Peace of Mind
Life insurance isn’t just about policies—it’s about people. It’s about ensuring that your loved ones are cared for, no matter what. But finding the right kind of coverage can feel overwhelming, especially with so many options out there. That’s where we come in. We’ve broken down the most important types of insurance to help you understand how they work and how they can protect your family, your future, and your legacy.
Types of Life Insurance
Final Expense Insurance
End-of-life costs can catch families off guard. With funerals averaging over $8,000, many loved ones are left struggling to cover these unexpected expenses.
Final expense insurance is designed to ease that burden. This affordable policy provides peace of mind, ensuring your family won’t have to shoulder financial stress during an already difficult time.
What Is Final Expense Insurance:
Final expense insurance, also known as burial insurance, is a small, straightforward policy designed specifically to cover funeral costs, medical bills, and any remaining debts.
Best Use Cases:
Perfect for seniors or those seeking affordable, no-frills coverage to handle end-of-life expenses.
Ideal Life Cycle Stage:
Pre-Retirement (51-64) and Retirement (65+).
Types of Life Insurance
Whole Life Insurance
For families who want lifelong coverage and a financial safety net, whole life insurance is a reliable choice. Unlike term policies, this coverage never expires as long as premiums are paid. Plus, it builds cash value over time, offering a powerful combination of protection and financial growth.
What It Is:
Whole life insurance is a permanent policy that provides lifelong coverage while accumulating cash value you can borrow against for emergencies or major life events.
Best Use Cases:
Ideal for families who value stability, wealth-building, and leaving a lasting legacy for their loved ones.
Ideal Life Cycle Stage:
Young Adulthood (26-35), Mid-Life (36-50), and Pre-Retirement (51-64).
Types of Life Insurance
Children’s Whole Life Insurance
Give your child a head start in life with a policy that grows with them. Children’s whole life insurance provides lifelong coverage at an affordable rate while building cash value they can use later—for college, buying their first home, or achieving their dreams.
What It Is:
A permanent policy designed for children, offering lifelong coverage and cash value accumulation.
Best Use Cases:
Perfect for parents or grandparents who want to secure a financial foundation for their children or grandchildren.
Ideal Life Cycle Stage:
Applies to children but supports financial goals in their future stages.
Types of Life Insurance
Term Life Insurance
Not everyone needs lifelong coverage. For those who want affordable protection during their family’s most financially vulnerable years, term life insurance is the perfect solution. It’s designed to provide peace of mind when it matters most.
What It Is:
A temporary policy that provides coverage for a set period, like 10, 20, or 30 years.
Best Use Cases:
Protecting young families, covering mortgages, or replacing income while raising children.
Ideal Life Cycle Stage:
Early Career (18-25) and Young Adulthood (26-35).
Types of Life Insurance
Universal Life Insurance
Life is unpredictable, and so are financial needs. Universal life insurance gives you the flexibility to adjust your premiums and death benefits while still providing lifelong protection.
What It Is:
A permanent policy with adjustable coverage and cash value growth tied to interest rates.
Best Use Cases:
Ideal for families who want flexible coverage and potential cash value growth for future needs.
Ideal Life Cycle Stage:
Young Adulthood (26-35) and Mid-Life (36-50).
Types of Life Insurance
Guaranteed Universal Life Insurance
If you’re looking for lifelong coverage without the high premiums of whole life insurance, Guaranteed Universal Life (GUL) is the perfect middle ground. It’s simple, affordable, and dependable.
What It Is:
A hybrid policy that offers lifelong coverage at lower premiums, without the focus on cash value.
Best Use Cases:
Great for estate planning or affordable lifetime coverage.
Ideal Life Cycle Stage:
Mid-Life (36-50) and Pre-Retirement (51-64).
Types of Life Insurance
Guaranteed Issue Life Insurance
Health challenges shouldn’t mean your family is left unprotected. Guaranteed issue life insurance ensures that everyone can access coverage, no matter their medical history. It’s peace of mind for those who thought they couldn’t get life insurance.
What It Is:
A no-exam, no-health-questions policy designed for individuals with health concerns. Coverage is guaranteed as long as premiums are paid.
Best Use Cases:
Ideally for seniors or individuals with pre-existing conditions who want to ensure their family is financially secure.
Ideal Life Cycle Stage:
Retirement (65+).
Other Types of Insurance
Accidental Death Insurance
Accidents happen without warning, and the financial impact can be devastating. Accidental death insurance offers affordable coverage to ensure your family is financially secure if the unexpected happens.
What It Is:
A policy that pays a lump sum to your beneficiaries if your death is caused by an accident.
Best Use Cases:
Great for individuals looking for supplemental coverage to protect their family from unforeseen tragedies.
Ideal Life Cycle Stage:
All life stages—Early Career (18-25) to Retirement (65+).
Other Types of Insurance
Long-Term Care Insurance
Most people don’t realize how expensive long-term care can be until it’s too late. This policy helps cover the high costs of nursing homes, in-home care, and assisted living facilities, ensuring your savings stay intact.
What It Is:
A policy that provides financial support for long-term medical and personal care services.
Best Use Cases:
This is for individuals planning for future healthcare needs and wanting to protect their assets in later life.
Ideal Life Cycle Stage:
Pre-Retirement (51-64) and Retirement (65+).
Other Types of Insurance
Annuities
Imagine a retirement where you never have to worry about running out of income. Annuities turn your savings into a guaranteed paycheck for life, giving you stability and freedom in your golden years.
What It Is:
A financial product that provides guaranteed income in retirement, often funded through lump sums or periodic contributions.
Best Use Cases:
For those planning for retirement who want a predictable, steady income stream.
Ideal Life Cycle Stage:
Pre-Retirement (51-64) and Retirement (65+).
Accelerated Death Benefit Rider
An accelerated death benefit rider allows the policyholder to access a portion of the death benefit while they’re still alive if they are diagnosed with a terminal illness or, in some cases, a serious medical condition. The remaining benefit is paid to the beneficiaries after the policyholder passes.
How It’s Helpful:
- Provides financial relief during a terminal illness when medical costs, caregiving expenses, or other financial burdens may arise.
- Allows policyholders to use the money however they need—whether for treatment, paying off debts, or creating meaningful experiences with loved ones.
- Ensures that even after funds are accessed, a portion of the death benefit remains for beneficiaries.
Common Scenarios:
- A person is diagnosed with a terminal illness and needs funds to cover out-of-pocket medical costs.
- A policyholder wishes to reduce financial stress for their family by using the benefit to pay off debt or pre-plan end-of-life arrangements.
Key Points to Know:
- The amount accessible varies but is usually a percentage (e.g., 50-75%) of the total death benefit.
- Taking the benefit reduces the payout beneficiaries will receive after death.
- It’s often included at no additional cost in many life insurance policies but may have specific qualification criteria (e.g., a certified diagnosis from a physician).
Policies That Benefit from This Rider:
- Term Life Insurance: Ensures temporary coverage also supports a terminal illness diagnosis.
- Whole Life and Universal Life Insurance: Offers financial flexibility while still maintaining some long-term coverage for beneficiaries.
- Mortgage Protection Insurance: Helps cover ongoing mortgage payments if diagnosed with a terminal illness, easing the burden on the family.
Chronic Illness Rider
What It Is:
A chronic illness rider allows the policyholder to access a portion of their life insurance death benefit if they are diagnosed with a qualifying chronic illness. Chronic illnesses are typically defined as conditions that prevent a person from performing at least two out of six Activities of Daily Living (ADLs), such as bathing, dressing, eating, or using the bathroom.
How It’s Helpful:
- Provides financial support for medical expenses, caregiving, or home modifications to accommodate a chronic condition.
- Reduces the financial and emotional burden on family members who might otherwise become caregivers.
- Gives policyholders peace of mind, knowing they can access their benefits during a difficult time.
Common Scenarios:
- A person develops a condition like advanced arthritis or dementia that requires ongoing care and assistance with daily tasks.
- A homeowner with a chronic illness uses the funds to retrofit their home with medical equipment or accessibility features.
Key Points to Know:
- Funds accessed through the rider are typically deducted from the death benefit.
- Qualification for benefits requires certification from a licensed medical professional.
- Can often complement long-term care insurance for additional coverage.
Policies That Benefit from This Rider:
- Whole Life Insurance: Offers cash value accumulation and living benefits for chronic illness care.
- Universal Life Insurance: Combines cash value growth and flexible premiums with chronic illness protection.
- Mortgage Protection Insurance: Prevents the family home from being at risk during prolonged illness.
Critical Illness Rider
What It Is:
A critical illness rider provides a lump sum payout if the policyholder is diagnosed with a qualifying critical illness, such as cancer, heart attack, stroke, kidney failure, or major organ transplant. The payout can be used for any purpose, offering much-needed financial flexibility during a health crisis.
How It’s Helpful:
- Provides immediate financial relief to cover expensive treatments, recovery costs, or out-of-pocket medical bills.
- Replaces lost income for those unable to work during recovery.
- Allows policyholders to maintain their financial stability while focusing on their health.
Common Scenarios:
- A policyholder is diagnosed with cancer and uses the lump sum to pay for treatments not covered by health insurance.
- Someone who suffers a heart attack uses the benefit to cover living expenses while recovering.
Key Points to Know:
- The payout amount is typically a percentage of the policy’s total death benefit.
- Accessing the rider reduces the amount paid to beneficiaries upon death.
- Riders often cover a predefined list of critical illnesses—be sure to review the policy’s terms.
Policies That Benefit from This Rider:
- Term Life Insurance: Protects families with temporary coverage and adds living benefits for unexpected health crises.
- Indexed Universal Life Insurance: Combines wealth-building potential with critical illness coverage for long-term security.
- Annuities: When paired with critical illness riders, annuities offer extra financial protection in retirement.
Let’s Protect Your Family Together
Life insurance is about more than policies—it’s about peace of mind, financial freedom, and protecting the people you love most. Whether you’re just starting out, raising a family, or planning for retirement, we’re here to help you find the perfect plan.