Life Insurance

Term life insurance is typically the lowest-priced coverage option, but it is temporary as it is designed to provide financial protection for a set period of time. It is meant to replace your income if you were to pass away during your working and earning years. Your family would be able to use the death benefit payout to help pay for the funeral as well as future expenses like the mortgage or rent, paying for childcare or college, and other general living expenses. Consider it as a safety net for your beneficiaries and family and while term life can be used to replace your lost potential income, life insurance benefits are paid out in one lump sum, not periodically or in regular payments like paychecks.

Universal life insurance is a type of life insurance designed to provide lifelong coverage but with added flexibility which may allow you to adjust your premium payment or coverage over time. Since it does offer lifetime coverage, universal life typically has higher premium payments than term. If you want lifelong coverage that will provide protection for the rest of your life, but also flexibility down the road or the ability for your policy to build cash value, universal life insurance may be a good option.