Life Insurance

Three kinds of coverage. One decision that actually fits your life.

Term, whole life, and index universal life (IUL) all do different jobs. Here's what each one actually gives you — and where each one falls short — in plain language, before you ever talk numbers.

	Term	Whole Life	IUL
Coverage length	Fixed period — 10, 15, 20, or 30 years	Permanent — to age 100	Permanent — to age 100+
Cash value	None	Yes — grows slowly, at a fixed rate	Yes — growth linked to a market index (e.g. S&P 500)
Cost	Lowest per dollar of coverage	Higher premium, stays level	Higher premium, more flexible design
Best fit	Temporary needs: mortgage, income replacement, kids at home	Permanent coverage with contractual guarantees, subject to policy terms	Permanent coverage with more growth potential and living benefits

Temporary Coverage

Term Life

10 · 15 · 20 · 30 year terms

Term life insurance covers you for a set number of years — 10, 15, 20, or 30 — at the lowest cost per dollar of coverage of any policy type. There's no cash value; it's pure protection for a defined window of time, which is exactly why it's often the right starting point for a young family or a specific obligation like a mortgage.

A real example: A 35-year-old buys a 30-year term policy. At age 65, the policy expires — the coverage simply ends. At that point, there are generally two paths forward, which we cover in detail below. Either way, coverage picked up later in life almost always costs more, since pricing is driven heavily by your age (and health) at the time you apply.

Permanent Coverage

Whole Life

Permanent to age 100

Whole life combines a death benefit with a cash value account that grows at a fixed, guaranteed (if modest) rate for as long as the policy is in force — typically to age 100. It's the most predictable form of permanent coverage: your premium and growth rate don't move with the market.

Cash value growth is generally modest compared to market-based investments and varies by policy and carrier
Borrowing against the cash value usually comes with a comparatively high interest rate
Outstanding loan balances reduce the death benefit your family ultimately receives
In most whole life designs, the cash value is absorbed by the insurance company at death — your beneficiaries typically receive the death benefit, not the death benefit plus the cash value

Permanent Coverage

Index Universal Life

Permanent to age 100+

An IUL is also permanent coverage with a cash value component, but that cash value is linked to the performance of a market index — commonly the S&P 500 — rather than a fixed rate. Most designs include a "floor" that protects your principal from market losses and a "cap" that limits how much upside you participate in during strong years.

Indexed crediting strategies are generally designed to prevent negative index credits due solely to market declines, although policy charges and other factors can reduce policy values
Often includes "living benefits" — the ability to access certain policy values while you're alive, for example in the case of chronic or critical illness, depending on the policy and carrier
Certain policy designs and rider structures may allow beneficiaries to receive amounts reflecting accumulated policy value — availability varies significantly by carrier and product, and it's one of the first things we'll look at together
Life insurance death benefits are generally excluded from federal income taxation, though exceptions may apply and the details of any policy depend on how it's structured

Term Life

What happens when a term policy expires?

If you're still living (and still need coverage) when your term ends, you generally have two options.

Option 1

Renew with your current company

Many term policies allow renewal without a new medical exam — but the premium resets based on your current age, so it's typically significantly higher than your original rate.

Option 2

Apply for a new policy elsewhere

Shopping with a different carrier may get you a better rate, but it usually requires new underwriting — so your current health matters.

Either way, coverage picked up later in life costs more. That's exactly the kind of decision worth planning for years in advance, not scrambling to solve at 65 — which is where a lot of these conversations start.

Not sure which one fits your family?

That's what the first conversation is for — no pressure, no jargon, just a clear look at your options.

Book a Legacy Clarity SessionComplimentary. No obligation.