Life Insurance

Life insurance can provide peace-of-mind that your beneficiaries will be provided for after you die. Learn more about selecting the right policy for you, and how some policies can even serve as retirement savings.
Frequently Asked Questions
  • What are the different types of life insurance?

    The main types of life insurance are term, whole, and universal life insurance. Whole and universal life are permanent life insurance products that stay in effect for as long as the policyholder pays the premium. In addition to death benefits, permanent life insurance features the ability to build cash value on a tax deferred basis and serve as an investment vehicle.

  • How much does life insurance cost?

    Life insurance premium costs vary greatly depending on the type of policy, amount of coverage, and the age and health of the insured. Term life insurance carries the lowest premium costs but, in general, all life insurance policies cost relatively less when purchased earlier in life.

  • When is the best time to buy life insurance?

    Usually the best time to buy life insurance is when you are relatively young and healthy, as this will allow you to get a lower premium versus when you are older or in poor health. Another factor to help determine the timing of life insurance purchase is one’s life stage, such as being newly married with a mortgage or starting a family.

  • Are life insurance death benefits taxable?

    Life insurance death benefits, payable to beneficiaries upon the death of the insured, are typically not subject to federal or state income tax. However, any capital gains that have accumulated on a tax deferred basis on the cash value portion of permanent life insurance are subject to federal income tax upon the death of the insured. The tax-free nature of life insurance death benefit is a primary feature that adds value and peace of mind to this type of financial asset.

Key Terms

Explore Life Insurance

Waiter Wearing PPE During Covid-19 Pandemic Serving Food to Diners Wearing Masks
How to Buy Life Insurance During a Pandemic
Angel guardian sleeping on the grave
Does Life Insurance Cover Suicide?
Portrait of a family outside of their home
What Is Supplemental Life Insurance?
Father and daughter putting up paintings in their new home
The Best Family Life Insurance of 2022
Insurance
What's a Guaranteed Insurability Rider?
Father and child on a beach at sunset
Which Types of Death Are Not Covered by Life Insurance?
Smiling businesswoman shaking hands with client before meeting
The Best 1035 Exchange Life Insurance Companies in 2022
Pay Advice
What Does GTL Mean on Your Paycheck?
covid19
Does Life Insurance Cover Pandemics?
Life Insurance
Most Affordable Life Insurance Companies of 2022
Saleswoman talking to clients in living room
The 6 Best Life Insurance With Living Benefits of 2022
Shot of an adorable boy dancing on the feet of his father at home
Best Children’s Life Insurance Companies of 2022
How Can I Borrow Money From My Life Insurance Policy?
Shot of a young woman hugging her grandmother helping her with her on a laptop
Best Life Insurance Companies for Diabetics of 2022
Happy family using tablet, laptop for playing game watching movies, relaxing at home
The 7 Best Life Insurance for Parents of 2022
Connecticut Insurance Commissioner Andrew Mais
Taking the Mystery Out of Life Insurance
Whole life insurance application form and pen.
Whole Life Insurance: Pros and Cons
Stylish older woman at laptop with mobile phone
Is Guaranteed Life Insurance Worth It?
Life insurance form
What Happens If You Outlive Your Term Life Insurance Policy?
Woman standing looking at two roads representing life insurance options
Term vs. Whole Life Insurance: What’s the Difference?
Person looking at a form
How Long Does a Beneficiary Have to Claim on a Life Insurance Policy?
Transgender flag
Qualifying for Life Insurance When You're Transgender
Nonbinary flag image
How Being Nonbinary Affects Getting Life Insurance
How to Avoid Taxation on Life Insurance Proceeds
A smiling couple meeting with financial advisor.
Whole Life vs. Universal Life Insurance: What's the Difference?
Reading Into Nonforfeiture Clauses
Universal Life (UL) Insurance
Cash Value vs. Surrender Value: What's the Difference?
Envelope of money
What Is Cash Surrender Value?
Whole life insurance paperwork, pen, and dollar banknotes.
Indexed Universal Life Insurance: Pros and Cons
Family Signing Life Insurance Policy
Life Insurance vs. Annuity: What's the Difference?
A document with title contingent beneficiary.
Understanding Death Benefits
Business meeting
Modified Endowment Contract (MEC)
401k and IRA word on egg.
Understanding Indexed Universal Life Insurance vs. IRAs & 401(k)s
How to List Beneficiaries for Life Insurance While Having a Trust
What Is an Endorsement?
Understanding Free Look Periods
How Paid-Up Additional Insurance Works
Working on Mortgage Rates
Policy Loan
A senior couple fishing on a lake at sunset.
What Is a 702(j) Retirement Plan?
Couple Signing Contract
Level-Premium Insurance Is Term Life With Static Premium Payments
What Is the Tax Percentage on Life Insurance?
Insurance Policy Death Benefits and Cash Values
A midsection of doctor showing insurance form to patient.
Life Insurance: Putting a Premium on Peace of Mind
Life insurance, key to financial security
Participating Policy Definition
Comparative Interest Rate Method Definition
High-Risk Hobbies May Fall into the Category of a Hazardous Activity for Life Insurance
A Couple Signing a Laon
What Is an Automatic Premium Loan?
Insurers and Reinsurers Use Convention Statements as Financial Statements
Financial advisor helping a senior couple at home
Indexed Universal Life (IUL) Insurance
6 Ways to Capture the Cash Value in Life Insurance
Stacks of $100 bills
Cashing In Your Life Insurance Policy
Explore the Various Types of Term Insurance
HSBC branch in New Bond Street, London
Bank-Owned Life Insurance (BOLI)
Is Annual Renewable Term Insurance Right for You?
How Cash Value Builds in a Life Insurance Policy
What Is Indexed Universal Life Insurance?
A stack of currency bills on top of one another.
Variable Life Insurance: Definition
How Do I Determine the Face Value of a Life Insurance Policy?
Financial advisor having a meeting with clients
Accelerated Underwriting Makes Life Insurance Easy

Life Insurance