Your Pocket Guide to Life Insurance 

There are several options for life insurance. Sometimes it is just difficult to know which one is right for you. A few key factors that we will consider include purpose, contract terms and budget. 


First you should ask yourself: Why am I considering taking out a life insurance policy? Once you can answer this question, we can select your type of policy: Term or Permanent. Here are some ideas to get you started. 

  • Cover debt
  • Replace lost income 
  • Pay for funeral costs 
  • Pay for college tuition for children 
  • Leave an inheritance or donation to charity 

Contract Terms 

Any time you purchase an insurance policy, you enter a contract with the insurance company. The same is true for life insurance. There are three types of life insurance policies that we will compare the contract terms of. 

  • Term
    • Set length of time – typically 10, 20 or 30 years 
    • Set premium for the selected length of time 
    • No cash value accumulation 
  • Whole Life
    • Lifelong coverage 
    • Set premium for life 
    • Cash value accumulation 
  • Universal Life
    • Flexible to offer permanent or term-like 
    • Flexible to offer set premium or varying 
    • Flexible to offer some cash value accumulation or none 


The amount that you are willing and able to spend is necessary to think through since it will determine the details of your policy – type and amount of coverage. Generally speaking, Term Life is the cheapest followed by Universal Life then Whole Life. 

Walk through these steps: Purpose, Contract Terms then Budget. If you get have questions along the way, we are only a chat or phone call away.