Term Insurance
Generally, the least expensive and least complicated. Covers you for a specific period of time (10, 20 or 30 yrs). If you die within the coverage period, a death benefit is paid to your beneficiary. If you are still living at the end of your term, your coverage ceases unless you renew. The renewal rates will be higher at that time. If you have a Return of Premium policy or rider, then all of the premiums you paid are refunded back to you tax-free (minus any benefits paid out to you).
Universal Life is a unique plan because both the premium and death benefit can be flexible. A popular choice with Small Business Owners that need that flexibility. Cash accumulation is tied to interest rates (guaranteed & non-guaranteed)
Whole Life covers you until you die with no premium change. Whole Life also has a cash accumulation benefit built in. Initially, this is the most expensive coverage but over time could be the least expensive. How? Because there is never a premium change it can be budgeted with no surprises. Term premiums will rise at the end of your term. Sometimes double, triple or quadruple the initial cost.
