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What Types of Life Insurance Is Best For You? Here’s How to Decide

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In today’s world, everyone is looking for ways to protect their assets, while also preserving their loved ones’ future. Fortunately, there are so many different types of life insurance available that you can find something that meets your specific needs. While some people might believe that only high-net-worth individuals should buy a lot of coverage.

That’s not the case at all. Everyone can benefit from having a certain amount of life insurance protection in place. In this article, we will look at some of the most common types of life insurance you can get and why they may be right for you.

Whole Life Insurance

Whole life insurance is the most common type of life insurance available. It’s also the most expensive. So, what makes it worth the price? Normally, you are buying a specific type of coverage with a policy. You will receive a predetermined amount of death benefit at the end of your term. In most cases, you will receive a guaranteed payout for your beneficiaries.

However, it’s important to note that you will pay more for this coverage if you are younger. Also, if you purchase a high enough amount, you can get coverage that has a death benefit that is higher than what’s available from a standard policy.

Variable Life Insurance

Variable life insurance is quite similar to whole life insurance. However, it is a little more flexible. Instead of receiving a fixed amount of death benefit, you get to decide how much of the death benefit to take at the end of the term. If you take a lower amount, you will be paying a lower premium. If you take a higher amount, you will pay a higher price.

Endowment Life Insurance

Many people see endowment life insurance as an unnecessary luxury. There is a misconception that you can’t get enough term life insurance to adequately protect your family. The truth is that you can buy a very small amount of term coverage. You can then supplement it with an endowment life insurance policy.

An endowment policy is a hybrid of whole life and term life insurance. Normally, it comes in the form of a contract-for-equity instrument (a lease) with a bank. The bank will hold the contract for a period of time and then immediately return it to the endowment company. You make periodic payments to the bank and then use the money to pay for your term life insurance. Then, the contract is returned to the insurance company to cancel the contract.

Discretionary Life Insurance

Some life insurance companies offer policies called “discretionary life insurance.” This is similar to variable life insurance. However, with variable insurance, you choose how much of your death benefit to take at the end of the term. With discretionary life insurance, you choose how much death benefit to take. It is commonly used to protect the estate of a wealthy person who wants to provide some guaranteed income to designated beneficiaries.

Universal Life Insurance

For some people, the only type of life insurance that makes sense is universal life insurance. This type of coverage is a bit of a hybrid between whole and variable life insurance. The good news is that it is much less expensive than whole life insurance and also much less expensive than variable life insurance.

Permanent life insurance

This is a form of term insurance that is normally issued as a long-term contract. You are the beneficiary until the death of the insured person. The insurance company will pay you a specified amount if the insured person is incapacitated, if the insured person dies, or both.

Cash value life insurance

It is important to note that there are many different types of life insurance. Just because one type of coverage is more prevalent, it does not mean it’s the best for you. Often, what is best for one person is not always what is best for another person.

For example, some people might prefer permanent life insurance. However, if you are looking for a quick way to protect your assets, cash value life insurance may be your best option.


Whole life insurance is the most expensive type of life insurance. A policy with a death benefit of $1 million would cost around $180,000 in premiums. A $10,000 term life insurance policy would cost around $255 for the same coverage amount. A contract-for-equity life insurance with a death benefit of $1 million would cost around $85,000.

A $10,000 term policy would cost around $128 for the same amount of coverage. A permanent insurance policy would cost around $250 for the same amount of coverage as a term policy. A cash value life insurance policy would cost around $100 for the same amount of coverage as a term policy.

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