Life insurance
Protect the people who rely on you.
Life insurance can provide financial support for the people you name. Understanding the main types, how much coverage you may need and who your beneficiaries are turns a confusing product into a choice you can make with confidence.
Types of life insurance
Financial protection for the people who rely on you.
A life policy pays a death benefit to the beneficiaries you name. The main choice is between coverage for a set period and coverage designed to last for life.
A benefit for the people you name
The death benefit goes to your beneficiaries. Reviewing them after major life changes keeps the policy aligned with your wishes.
Term for a defined need
Term coverage lasts a fixed number of years and generally pays only if death occurs during the term. It can fit needs with an end date, such as a mortgage or raising children.
Permanent for lifelong coverage
Whole and universal life are designed to last for life and include a cash value component. Costs, fees and guarantees vary by product.
| Type | What it generally is |
|---|---|
| Term life | Coverage for a fixed number of years. It generally pays only if death occurs during the term. |
| Whole life | Permanent coverage, generally with fixed premiums and a cash value component. |
| Universal life | Permanent coverage with more flexible premiums or benefits and a cash value component. Rules vary by product. |
| Group life | Coverage offered through an employer or organization, often tied to membership or employment. |
This is general information, not a recommendation of any product. Read the contract and ask for a written illustration where one applies.
Choosing coverage: five questions
- Who depends on your income?Start with the people who would be affected and what they would need to cover.
- What obligations would remain?List debts and ongoing costs the benefit might need to cover.
- How long does the need last?Match a term length to the period you want covered.
- Is coverage through work enough?Group coverage can end if you leave the job, so check what happens next.
- Who are your beneficiaries?Name them clearly, include contingent beneficiaries, and keep them current.
Guides
Go deeper.
Each guide cites its sources.
Questions
Common questions.
Who receives the death benefit?
The beneficiaries named on the policy. Review them after major life changes and confirm the process with your insurer.
Do I always need a medical exam for life insurance?
No. Some policies require an exam or health questions and others do not. Underwriting rules and pricing vary by insurer and product.
What happens when a term policy ends?
Coverage ends at the end of the term unless the policy allows renewal or conversion. Those terms are in the contract.
Cover the rest of the picture.
Review the protection for your own care, and for your vehicle and home, which are often the largest exposures after income.