top of page

What Are The Three Basic Kinds Of Life Insurance?

What are the different types of life insurance?
What are the three basic types of life insurance?

Options are available for people looking for an insurance policy. In your search for answers you may have come across sales people selling the "best" policy. There is no such thing as a "best' policy. Each person should look for what suits them best; and that could be different depending on each situation.

There are three main types of Life insurance.Term, whole life, and universal. The easiest way to explain these three is by using their names.


Term policies, have coverage for predetermined “Terms”; typically 10,20, and 30 year terms. Premiums also go up in intervals through the whole term.Upon completion of selected term, the policy would “terminate”. If the person covered does not die with in the agreed term, then the death benefit is not paid out.


A whole life policy is also self explanatory. These policies last the whole life. Premiums stay the same for the life of the policy.The death benefit is paid out when the covered passes.Another feature of the whole life policy is the cash value available to “borrow”. This benefit enables the policy holder to get a “loan” from the death benefit. The catch is when the insured passes ,what ever has been borrowed will be subtracted from the pay out.

A universal policy is relatively complicated, but in short it is a life insurance policy attached to an investment vehicle.Either indexed or Variable, each having slightly different features. Indexed policies are attached to stock market indexes like S&P 500. Variable polices are attached to the stock market but primarily mutual funds. Regardless of how they are connected to the stock market; they perform good when the market is good and bad when the market is struggling.

KINDS OF INSURANCE: Text

Term Insurance

Term insurance is insurance that is guaranteed until a predetermined date.The types of policies offered in this kind of arrangement are designed to cover temporary liabilities a person has. An example could be a 30 year term policy on the bread winner of the family for 300 thousand; covering the family home. If the bread winner were to pass before the 30 years, 300 thousand would be paid out to the beneficiaries of the policy. Remember pay out is subject to constraints within the policy. Make sure to read your policy carefully before signing.

KINDS OF INSURANCE: HTML Embed

Whole Life Insurance

Whole life insurance is a type of insurance that provides coverage for the life of the insured. Upon the death of the insured a death benefit is paid out to the beneficiaries. Notable aspects of the whole life policy are premiums that don't go up or down but stay the same, coverage for the insureds whole life, and cash value(the ability to borrow money from the death benefit; what is borrowed will be subtracted from the death benefit upon insureds death).

KINDS OF INSURANCE: HTML Embed

Is Term life Better Than Whole life insurance?

Should I get both term and whole life insurance?

KINDS OF INSURANCE: HTML Embed

Universal Insurance

Why do people buy universal life?
Where do the investment gains from a universal life policy go?
Do universal life insurance policies expire?

KINDS OF INSURANCE: HTML Embed

Whole Life And Universal  Comparison

KINDS OF INSURANCE: HTML Embed

Which Is Better Whole Life Or Universal Life?

Is Universal Life Considered Whole Life?

KINDS OF INSURANCE: HTML Embed

Universal And Term Life Comparison

KINDS OF INSURANCE: HTML Embed
bottom of page