Skip to main content
InsuranceLife InsurancePersonal Insurance

Understanding Life Insurance

By February 3, 2021July 17th, 2024No Comments

If you have people who depend on you for financial support, then life insurance is really about protecting them in case something happens to you. Life insurance can be confusing, so here’s an overview of the different types:


  • Term—This is the simplest and generally the cheapest form. You buy coverage for a specific period of time. It can usually be renewed, but premiums will increase based on age and health factors.
  • Whole Life—You purchase this policy to cover your entire life, as long as you keep paying premiums. Premiums remain constant throughout the policy, and the company invests a portion of your premium that becomes the cash value.
  • Universal Life—This policy is similar to whole life, but it has the potential for higher earnings on the savings component. It is more flexible regarding changing premiums and face value during the policy.
  • Variable Life—A variable life policy generally has fixed premiums, and you have control over investment decisions for the cash value portion. This is riskier because there is no cash value guarantee.


Many people decide based on an income replacement calculation, between 5 and 10 times the amount of your current income. If you have more questions about life insurance benefits, contact your HR manager.