Life Insurance 101
Life insurance, start to finish
Everything you need to understand the basics — in about ten minutes.
What life insurance does
Life insurance is a contract: you pay premiums, and the insurance company pays a death benefit to your beneficiaries when the insured person dies while the policy is in force. It’s designed to replace income, pay debts and protect the people who depend on you.
Key terms
Types of coverage
Term life covers a set period. Permanent life — including whole life, universal life and indexed universal life — can last a lifetime and may build cash value. Final expense is a smaller whole life policy for end-of-life costs.
Compare the main types side by side →
How much you may need
Add up the money your family would need — income replacement, mortgage and debts, education and final expenses — then subtract existing coverage and savings. Our calculator gives an educational estimate.
How underwriting works
Insurers review your application answers and, with your permission, records such as prescription history and the MIB (Medical Information Bureau). Some policies need an exam; many don’t. Your health, age, tobacco use and lifestyle determine your rate class. Always answer questions honestly — misstatements can put a claim at risk.
How to get started
- Decide what you want the coverage to do.
- Estimate an amount and a budget.
- Request a quote or schedule a consultation.
- Apply, complete underwriting and review your policy when it arrives.