Compare Different Types of Life Insurance

Compare different types of life insurance policies to find the one that is best for your needs.

Types of Insurance What it’s for What it’s not for Pros Cons Average Cost
Term Insurance Used to cover financial risk for relatively short or fixed periods of time. Often used to protect young families or mortgages. Building equity. Straight forward. Affordable for all budgets with a large death benefit. Lot’s of choice and variation. Customizable to your exact needs. “Expires” after term date. Does not build equity. Tougher to qualify for if you have health issues. Takes 4-6 weeks to issue. $$$
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Permanent Insurance (for all types) Covering your life insurance needs while building equity through cash value. Never expires. Covering a huge financial need on a slim budget. Builds cash through interest from your premiums. A storage place for cash that is tax sheltered. Lasts your entire life. You can cash out the death benefit at the end of term. Less death benefit available than term. Tougher to qualify for if you have health issues. Takes 4-6 weeks to issue. $$$
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Guaranteed or Instant Issue Insurance that will not decline you coverage under any health circumstance. Getting large amounts of death benefit. Is available for all people no matter what their issues are. Gives you enough death benefit to cover burial costs. Allows to get life insurance instantly! Relatively expense compared to other types of death benefit. Only forwards you your premiums paid if you pass away within the first 2 years of the policy. $$$
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Diabetic Insurance Specially designed to be affordable for diabetics. Designed to be more affordable for diabetics that manage the condition through diet and exercise. Allows for multiple options for different levels of diabetes. Specifically designed and analyzed by diabetes experts, which allows for fairer costs. Medical and non-med options Limited death benefits available compared to regular term insurance. ‘ Favors non-insulin dependent diabetics significantly. $$$
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Non Medical Term Insurance Perfect for people who want quick insurance with no medical exam. Can be a little bit more expensive than regular term. Allows for very quick coverage - takes less than a week if you’re in good health. No medical exam! Very simple to apply for. Death benefit amount is limited. Easier to get declined from coverage. Generally more expensive. $$$
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Many people ask "What type of life insurance should I get?" This table helps you compare different types of life insurance and the pros and cons to each.

Each type of insurance policy has benefits and drawbacks

Comparing several types of life insurances, finding cheap insurance, and navigating the life insurance landscape can be tricky, but we’re here to help. Life insurance provides important financial benefits that should be gone through and considered to get the best policy for you. Not everyone is an expert on life insurance, and it can be a bit overwhelming. There are so many various kinds, different policies, and phrases such as whole life, term life, cash value, and variable life, which can be confusing if you're not an insurance expert. How do you make sense of it all? Here’s a quick breakdown of the most common types of different insurance policies and the pros and cons of each.

Term Life Insurance

Term life is exactly what it sounds like. Term life insurance or term assurance is life insurance that provides coverage at a set rate for a specific period of time. Term life insurance is typically the least expensive way to purchase a large death benefit on a coverage amount per premium dollar basis over a set amount time. Term life can be broken down into a few different categories:

  • Level Term—Your premium and death benefit remain the same for the entire length of the term, whether that is 10, 20, or even 30 years.
  • Annual Renewable Term—The death benefit remains unchanged throughout the term, but the contract renews annually, usually with an increase in premium each year. Initially, premiums may be less than in a level term policy, but over time it can become more expensive.
  • Decreasing Term—Here, the death benefit decreases each year while the premium remains the same. The policy ends when the death benefit reaches zero.

Term life insurance is used to cover financial risk for relatively short or fixed periods of time. It’s often used to protect young families or mortgages. Term life insurance is not for building equity. Some pros would be that it’s straight forward and affordable for all budgets, with a large death benefit. It has lots of choices and variations, and customizable to your exact needs. Some cons would be that it expires after term date, and does not build equity. It’s also tougher to qualify for if you have health issues, and can take up to 4-6 weeks to issue.

Permanent Insurance (for all types)

Permanent life insurance is for covering your life insurance needs while building equity through cash value, and it never expires. Permanent life insurance is not for covering a huge financial need on a slim budget. Some of the pros are that it builds cash through interest from your premiums. Permanent life insurance is a storage place for cash that is tax sheltered. It lasts your entire life, and you can cash out the death benefit at the end of term. Some of the cons are that it has less death benefits available than term. This life insurance is tougher to qualify for if you have health issues. It does take 4-6 weeks to issue.

Guaranteed or Instant Issue

A guaranteed life insurance policy is guaranteed coverage, just like it reads. Being a life insurance policy for anyone who applies for it, guaranteed life insurance is for everyone. With few questions asked, it’s a life insurance is a policy that provides cash benefits to a beneficiary. It is a simple and affordable guaranteed life insurance policy designed to cover expenses like medical bills, credit card debt or funeral costs, and can help protect your loved ones from future financial burdens. The insurance company will offer this cheap insurance policy to any applicant regardless of his or her past or present health concerns. Again it’s as easy as that – Guaranteed.

A guaranteed life insurance policy is for insurance that will not decline you coverage under any health circumstance. It is not for getting large amounts of death benefits. Some of the pros are how it is available for all people no matter what their issues are. It gives you enough death benefit to cover burial costs, and allows you to get life insurance instantly! Some of the cons are that it’s relatively expensive compared to other types of death benefits. And, only forwards your premiums paid if you pass away within the first 2 years of the policy.

Diabetic Insurance

Diabetic life insurance is specially designed to be affordable for diabetics. But it’s not designed to be more affordable for diabetics that manage the condition through diet and exercise. Some of the pros would be it allows for multiple options for different levels of diabetes, it’s specifically designed and analyzed by diabetes experts (which allows for fairer costs), and it’s medical and non-med options. The cons would be how the limited death benefits available compared to regular term insurance, and how it favors non-insulin dependent diabetics significantly.

Diabetic life insurance is specially designed to be affordable for diabetics. However, it’s designed to be more affordable for diabetics that manage the condition through diet and exercise. Some of the pros are how it allows for multiple options for different levels of diabetes. This life insurance is specifically designed and analyzed by diabetes experts, which allows for fairer costs. And has medical and non-med options. Some of the cons are how diabetic life insurance has limited death benefits available compared to regular term insurance, and favors non-insulin dependent diabetics significantly.

Non Medical Term Insurance

Do you have health problems and want to get life insurance? You could face significantly increased premiums, or even rejection. Or do you just not want to deal with the lengthy process of a medical exam? With no medical exam life insurance you can skip the paperwork and exams and obtain a small amount of life insurance even if you have some health problems.

Non medical term insurance is perfect for people who want quick insurance with no medical exam. However, it can be a little bit more expensive than regular term. Some pros are how it allows for very quick coverage - takes less than a week if you’re in good health – with NO medical exam! And it’s very simple to apply for. Some of the cons are that its death benefit amount is limited. It’s easier to get declined from coverage. And, generally, it’s a bit more expensive.

Choose Wisely

There are a number of types of life insurances options available, and what's right for you may not reflect what's right for someone else. Cheap insurance might sound good, but it might not be the best insurance for you. Your financial needs have to be considered to compare different types of life insurance. There are several different types of life insurance to choose from. Taking time to learn what each type of policy offers can ensure that you choose a policy that’s best suited to your long-term needs and financial situation. Learn more about all kinds and types of life insurance, and Contact us today! One of our licensed knowledgeable agents can review you information and help you find the right term life insurance policy for you and your family. We would be happy to help guide you and answer any questions you might have about life insurance and how to compare all types.