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Which Type of Life Insurance is Best for Me?

Term life insurance coverage is best suited for those needing to cover a specific amount of liability for a specific period of time, (to cover a mortgage, car loan, student loan, etc) or those needing a lot of coverage at once, (to cover a family with children). Term insurance is “use it or lose it” coverage. At the end of the term, coverage stops.  If more coverage is needed, the insured would need to reapply for a new policy.

Universal life coverage is permanent coverage. This type of policy offers a constant amount of life insurance coverage and builds cash value within the policy. This policy is flexible, the cash value inside the policy can be used to pay the premium and insured’s can take out loans on the cash value.  Universal life insurance is used to cover final expenses and guarantees future insurability.

The simplest way to compare the 2 types of coverage is: renting (term insurance) vs. buying insurance (owning the cash value in a Universal life policy).

Most people find a combination of both term and universal life insurance coverage best fits their needs.