Life insurance
Coverage for the people who count on you.
Term life, whole life and mortgage protection, explained in plain English so you can pick what fits your family and your budget.
Term life
Coverage for a set number of years, such as 10, 20 or 30. It pays only if the insured person dies during the term, and most term policies build no cash value. It usually costs less up front and can fit a need with an end date, like raising children.
Whole life
Permanent coverage you can keep for as long as you pay the premiums. Part of each premium goes toward cash value that builds inside the policy. It costs more than term for the same amount of coverage.
Mortgage protection
Term life set up to match your mortgage. If you pass away during the term, the benefit is paid to your family, not the bank, so they can keep the home or use it however they need.
Which one fits?
A good first question is whether your need has an end date. A mortgage or raising children usually does, so term life may fit. Final costs and leaving something behind do not end at a certain age, so many people over 50 look at whole life.
Many term policies can be renewed, but renewal premiums may be higher, and you may lose the right to renew at a certain age (NAIC).
Read: term vs. whole life after 50
Read: why mortgage protection matters
Policy features, premiums, cash values, riders and guarantees vary by insurance company, product and state, and depend on the insurance company's claims-paying ability. Eligibility is subject to underwriting.