We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias.
But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.
Evaluate your options to find the ideal policy for you and your family.
Figuring out the amount of coverage, how much you want to leave to your beneficiaries and what additional coverage you might need depends on your family and financial situation. The right life insurance policy helps ensure your loved ones are taken care of after you’re gone.
Explore your coverage options to find the policy that is best suited to you and your family.
Why we like:
Compare quotes from 16 life insurance companies side by side.
Compare multiple providers
Calculate how much coverage you need
Get a quote in 2 minutes
Why we like: Policygenius
Compare quotes from 16 life insurance companies side by side.
Get the coverage amount and term that's right for you.
There are a number of different types of life insurance — which is one of the reasons it can be difficult to nail down the best policy for your needs. Here are the key features of each policy type to help you compare your options.
Term life insurance offers coverage for a predetermined length of time. Terms come in varying lengths and offer a one-time death benefit payment to beneficiaries if you pass away during the term of the policy.
The policyholder chooses the term length — typically between five and 35 years — and the coverage amount. You pay a set premium to maintain coverage over the length of the term. If you live past the end of the term, you can either renew or surrender the policy.
Term life insurance is often considered to be the most affordable. While fairly straightforward, this type of life insurance doesn’t build cash value and premiums may be lower or higher depending on your age, health, gender and occupation.
Permanent life insurance offers coverage for life, with the added benefit of accumulating cash value.
Permanent life insurance comes in three forms: whole, universal, and variable. Each policy type offers unique coverage options but all three build cash value and offer lifelong coverage.
Permanent life insurance is typically more expensive than term life insurance but can offer fixed premiums, a guaranteed death benefit and cash value accumulation that can act as a long-term investment vehicle. The earlier you apply, the better your chances of securing a lower premium.
Whole life insurance offers fixed premiums, lifelong coverage and cash value accumulation. It also has the potential to earn dividends, depending on your provider.
Premiums are paid on a monthly, bimonthly or annually and coverage is guaranteed. You can build cash value over time and borrow against the policy’s death benefit. When you die, your beneficiaries receive a fixed death benefit.
As is the case for many forms of life insurance, the cost of premiums depends on the policyholder. Whole life insurance is more expensive than term life insurance but offers fixed premiums, builds cash value and may earn dividends.
Like whole life insurance, universal life offers lifelong coverage and cash value accumulation with a unique feature: flexible premiums.
While offering many of the same features as whole life insurance, including cash value accumulation and lifelong coverage, universal policies are unique in that they offer flexible premiums. You can adjust how much you pay into your policy as your finances change, and you can use the cash value to cover premiums later in life.
A permanent form of life insurance offers unique features but requires a more hands-on approach than term and whole life insurance. You must monitor your policy’s cash value to ensure it is enough to keep your coverage intact, and interest rates on your savings fluctuate over time.
Variable life insurance is a type of permanent policy that offers policyholders the opportunity to place their accumulated cash value into a number of smaller investment accounts.
The policyholder can select between a number of subaccounts to invest the cash value of their policy. The insurance company manages these accounts, and if profitable, you can use the money to cover premiums later.
Variable life insurance is best suited for those who are comfortable investing. Taking out a variable life insurance policy can be a gamble — if your investments do well, you may be able to cover the cost of premiums. But if they do poorly, your death benefit may be reduced or wiped out altogether.
Variable universal life insurance is a form of permanent life insurance that offers flexible premiums and the investment of accumulated cash value.
Variable universal life insurance offers the policyholder the ability to invest cash value while keeping the savings component and death benefit of the policy separate. Cash value may be reduced as a result of negative returns and higher premiums may be needed to rebuild the cash value of the policy.
Variable universal life insurance offers flexible premiums and the potential to earn returns, but if your investments do poorly, your premiums may rise. This policy is best reserved for those who have prior investment experience.
Simplified life insurance is a no-medical-exam policy that offers both term and permanent policies for coverage at a higher premium.
Applicants answer a medical questionnaire instead of undergoing a medical exam, but approval isn’t guaranteed. Premiums tend to be expensive and coverage is limited.
If you’re looking for quick, straightforward coverage without taking a medical exam, simplified issue life insurance could be a sensible choice. But premiums are expensive and policies often don’t offer much room for customization.
Joint life insurance is a single policy that covers two people, available as either a permanent or term policy.
Joint policies come in two forms: first- and second-to-die. In a first-to-die joint policy, the policy is paid out when one spouse dies, with the death benefit supports the surviving spouse. In a second-to-die policy, the policy is paid out after both spouses have died, with the death benefit supporting a beneficiary.
Joint life insurance is well-suited to healthy couples who want to streamline and simplify their coverage with a single policy.
Group life insurance is a form of term life insurance coverage provided by an employer at little to no cost for employees.
Employers purchase group life insurance for their employees and retain the master contract. Employees are either automatically enrolled or must choose to opt in. Premiums are covered by the employer or are deducted directly from the employee’s monthly earnings. Coverage is guaranteed but minimal.
Group life insurance is a convenient way to access a policy at little to no cost, but coverage is often minimal and you could stand to lose your policy if you leave your employer. Bump up your coverage with supplemental insurance or take out an individual policy if you don’t plan on sticking with your company long term.
Credit life insurance pays off your outstanding debts when you pass away, with the value of the policy going directly to your creditors.
This form of life insurance is typically offered when you take out a loan, such as a home loan, car loan or line of credit. Unlike term and whole life policies, the value of credit life insurance doesn’t go to your beneficiaries, but to your creditors. The value of the policy dwindles over time as the outstanding balance on your loan decreases.
Credit life insurance is marketed as a method of protecting your heirs from inheriting your debt, but the policy payout from a term of whole life policy is capable of providing the same coverage. Credit life insurance coverage decreases over time while premiums remain steady, so consider alternative policy options before you apply.
Accidental death and dismemberment (AD&D), is a limited form of life insurance that covers you in the event of an accident.
Should you be involved in a fatal accident, this policy will pay out to its designated beneficiaries. If you’re injured and lose a body part or the ability to see, hear, or speak, the policy will pay out a portion of the full benefit.
This form of life insurance is available as both a stand alone policy or as a policy rider. As a stand alone policy, it’s far from comprehensive, but as a policy rider, it could provide added protection and peace of mind.
Supplemental life insurance is a form of additional insurance you can purchase to bump up existing coverage through an employer.
You can opt to purchase supplemental insurance by having premiums deducted from your paycheck. There’s typically no medical exam but if you leave your job or retire, you’ll likely lose your coverage.
The group insurance offered and paid for by employers may not be enough to cover your needs — especially if you have a large family. Consider supplemental insurance if you’re insured through your employer and plan to stick with your company.
Also called burial insurance, final expense life insurance is designed to cover end of life medical bills and funeral expenses, typically topping out at $20,000.
Final expense insurance often doesn’t require a medical exam. Instead, applicants are asked to answer a medical questionnaire. The policy is open as long as you pay the premium.
If you already have permanent life insurance, you don’t need to worry about final expense insurance — you’re covered. Final expense life insurance is best if you don’t have a policy, but don’t want to rely on their loved ones to provide for their burial expenses.
Mortgage life insurance pays off the remainder of your mortgage after you die.
After purchasing a home, your lender may offer you mortgage life insurance. Approval rates are high but premiums are expensive and policies are non-transferable, so you’ll lose your coverage if you move.
It may be more affordable to purchase a term or whole policy, but if you’re having trouble securing coverage elsewhere due to a pre-existing medical condition, mortgage life insurance may be a good call.
When perusing your life insurance options, there are a number of things to consider, including terms, rates, premiums and coverage maximums.
Dig for details when you’re choosing a policy. Review your life insurance options with multiple providers before you apply.
Frequently asked questions.
Whole, variable, universal and variable universal life insurance policies all build cash value over the life of the policy.
Term life insurance is often the most affordable life insurance that you can buy independent of your employer. This is due to the fact that you can lock yourself into affordable rates when you’re young and are only paying for what you need.
The only policies that can be surrendered to access the accumulated cash value in the policy are permanent ones. However, if your term policy has a convertible option you still may be able to cash it in.
But remember, surrendering your policy means you’ll no longer be covered, and taking out a new policy may be expensive.
Shannon Terrell is a writer for finder.com who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
