Life insurance, explained
Understand your options, then choose with confidence
Life insurance pays a benefit to the people or plans that depend on you. This guide covers how it works and the main coverage types, so you can talk with an advisor from an informed place.
What life insurance does
At its core, life insurance replaces financial support that would be lost if you passed away. In exchange for premiums, the insurer promises to pay a death benefit to your beneficiaries. People commonly use it to replace income, cover a mortgage or debts, prepare for final expenses, leave a legacy, or protect a business.
Common reasons people buy coverage
Replace income
Keep your household stable if a paycheck is lost.
Cover a mortgage
Help your family stay in the home.
Prepare for final expenses
Ease the cost of funeral and end-of-life bills.
Leave a legacy
Pass something on to people or causes you care about.
Protect a business
Fund a buy-sell or replace a key person.
Coverage types
Each type suits different needs. Explore the details on each page.
Term Life Insurance
Term life insurance provides coverage for a set number of years and pays a benefit to your beneficiaries if you pass away during that term.
Learn more →Whole Life Insurance
Whole life insurance is a form of permanent coverage designed to last your lifetime as long as premiums are paid.
Learn more →Final Expense Insurance
Final expense insurance is a smaller permanent life policy intended to help cover funeral, burial, and other end-of-life costs so loved ones are not left to pay them.
Learn more →Indexed Universal Life (IUL)
Indexed universal life (IUL) is permanent life insurance with flexible premiums and cash value that earns interest linked to the performance of a market index.
Learn more →Mortgage Protection Insurance
Mortgage protection is life insurance arranged so your family could keep the home if you pass away.
Learn more →No-Medical-Exam Life Insurance
No-medical-exam life insurance lets you apply without a physical exam.
Learn more →Term vs. permanent: a simple decision path
Is your need temporary — like income or a mortgage during working years?
Term life is often the most cost-effective fit. See term life or mortgage protection.
Do you want coverage that lasts your lifetime, or cash value?
Consider permanent coverage like whole life or indexed universal life.
Is the main goal covering final expenses, especially later in life?
Look at final expense or guaranteed-issue coverage.
What affects eligibility and premiums
- Your age and overall health
- Tobacco or nicotine use
- The coverage amount and length you request
- The type of policy and any riders
- How the carrier underwrites your application
Medical exam vs. no-exam
Some policies require a medical exam; others use accelerated underwriting with no exam, relying on health questions and third-party data. "No exam" does not always mean "no underwriting," and approval is not guaranteed. We explain the tradeoffs on the no-medical-exam page.
Beneficiaries
Your beneficiary is who receives the death benefit. It is worth naming primary and contingent beneficiaries and keeping them current after life events. Our beneficiary checklist can help.
Riders and living benefits
Riders can add features such as accelerated (living) benefits that may let you access part of the benefit during a qualifying illness. Definitions and costs vary — see living benefits.
Reviewing your coverage
Life changes — a new child, a home, a business, a marriage. It helps to review coverage periodically so it still matches your responsibilities.
How to begin
The simplest first step is a short, no-pressure conversation. Tell us what you want to protect and we will help you compare available options.
More planning topics
Living Benefits
Access coverage during serious illness.
Learn more →Guaranteed-Issue Coverage
Coverage without health questions.
Learn more →Life Insurance for Seniors
Options later in life.
Learn more →Life Insurance for Families
Protect young families.
Learn more →Business Life Insurance
Key-person and buy-sell needs.
Learn more →Term vs. Whole Life
Understand the tradeoffs.
Learn more →Frequently asked questions
How does a death benefit work?
If you pass away while the policy is in force, the insurer generally pays the death benefit to your named beneficiaries. How your beneficiaries receive it can depend on the policy and options chosen.
Is a life insurance payout taxable?
Life insurance death benefits are often not subject to federal income tax, but situations vary, and other taxes or circumstances can apply. This is not tax advice — please consult a tax professional about your situation.
What is the difference between term and permanent?
Term covers you for a set number of years; permanent (like whole or universal life) is designed to last your lifetime and may build cash value. The right fit depends on how long you need coverage and your goals.
Do I have to take a medical exam?
Not always. Some policies use accelerated or simplified underwriting with no exam, though health questions and data may still apply. Availability and limits vary by carrier.
Start with a conversation, not a sales pitch.
Tell us what you want to protect, and we will help you understand the coverage options that may fit.