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Types of Policies 

Understanding Death Benefit Types

Fixed premiums and death benefit for the entire length of contract; issued based on health review. Full coverage from first day of premium. 

Level / Immediate:

"Death Benefit" is defined as the payout to your beneficiary upon death, which typically a lump sum. This amount may differ from the Face Amount in some cases such as outstanding policy loan at death or depend on policy structure at time of death. Policy structures are used to manage risks by protecting the insurance companies from issuing policies that may result in fast death claims. Some common policy structures for death benefits are as follows:

Coverage with a 2–3 year entry period during which benefits gradually increase for natural death, often through Return of Premiums (ROP), partial benefits, or both; issued based on health review.

Modified / Graded:

Issued with no health questions or exams; includes a 2–3 year waiting period for natural death, typically offering ROP.

Guaranteed Issue / Graded:

Term Life Policy

May be appropriate for individuals seeking temporary protection needs such as covering a mortgage or income replacement during child raising years when financial responsibilities are their highest.

Pros:

  • Coverage lasts for a specific Term period (10-30 years)
  • Ideal for temporary needs
  • Lowest cost for highest temporary coverage

Cons:

  • Price increases  overtime if renewed since premiums are not fixed
  • Typically offers no Cash Value accumulation
  • Coverage ends when term expires

Term Life Policy

May be appropriate for individuals seeking temporary protection needs such as covering a mortgage or income replacement during child raising years when financial responsibilities are their highest.

Pros:

  • Coverage lasts for a specific Term period (10-30 years)

  • Ideal for temporary needs

  • Lowest cost for highest temporary coverage

Cons:

  • Price increases  overtime if renewed since premiums are not fixed

  • Typically offers no Cash Value accumulation

  • Coverage ends when term expires

Whole Life Insurance

(Medical Examination / Fully Underwritten)
May be appropriate for individuals seeking estate planning, legacy creation, long-term wealth transfer. These policies offer guaranteed lifelong coverage and cash value growth.

Pros:

  • Lifetime protection
  • Fixed premiums that never increase
  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Most policies require full medical underwriting
  • Cash value growth can be slow
  • Less coverage per dollar than term

Whole Life Insurance

(Medical Examination / Fully Underwritten)

May be appropriate for individuals seeking estate planning, legacy creation, long-term wealth transfer. These policies offer guaranteed lifelong coverage and cash value growth.

Pros:

  • Lifetime protection

  • Fixed premiums that never increase

  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Most policies require full medical underwriting

  • Cash value growth can be slow

  • Less coverage per dollar than term

Single Premium Whole Life

(Medical Examination / Fully Underwritten)

May be appropriate for individuals who want lifelong coverage with a large single upfront premium payment, simplifying funding and building guaranteed cash value over time, ideal for legacy or estate planning.

Pros:

  • One-time payment locks in coverage

  • Simple funding, no ongoing premiums

  • Lifetime protection

  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Large upfront cost required

  • Less flexible than ongoing premium policies

  • Coverage may be limited by insurer or age

Single Premium Whole Life

(Medical Examination / Fully Underwritten)
May be appropriate for individuals who want lifelong coverage with a large single upfront premium payment, simplifying funding and building guaranteed cash value over time, ideal for legacy or estate planning.

Pros:

  • One-time payment locks in coverage
  • Simple funding, no ongoing premiums
  • Lifetime protection
  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Large upfront cost required
  • Less flexible than ongoing premium policies
  • Coverage may be limited by insurer or age

Simplified Issue Whole Life

(Health Questionnaire / Partially Underwritten)

May be appropriate for individuals seeking final expense planning and ensuring funds are accessible for funeral costs or small debts without undergoing a medical examination. 

  • Health Questionnaire, no medical exam 

  • Lifetime Protectionn

  • Fixed premiums that never increase

  • Death benefit & Cash Value guaranteed, subject to policy terms

Pros:

  • Smaller coverage amounts

  • Higher cost per dollar of coverage

  • Not ideal for large estate or income replacement

Cons:

Simplified Issue Whole Life

(Health Questionnaire / Partially Underwritten)
May be appropriate for individuals seeking final expense planning and ensuring funds are accessible for funeral costs or small debts without undergoing a medical examination. 
  • Health Questionnaire, no medical exam 
  • Lifetime Protectionn
  • Fixed premiums that never increase
  • Death benefit & Cash Value guaranteed, subject to policy terms

Pros:

  • Smaller coverage amounts
  • Higher cost per dollar of coverage
  • Not ideal for large estate or income replacement

Cons:

(Health Questionnaire / Partially Underwritten)

Modified Issue Whole Life

May be appropriate for individuals with moderate health issues who couldn’t qualify for immediate coverage but want affordable permanent protection with a short Graded Benefit Period.

  • Health Questionnaire, no medical exam 

  • Lifetime Protectionn

  • Fixed premiums that never increase

  • Death benefit & Cash Value guaranteed, subject to policy terms

Pros:

  • Partial Death Benefit during first 2-3 years

  • Smaller coverage amounts

  • Higher cost per dollar of coverage

  • Slower cash value growth

Cons:

(Health Questionnaire / Partially Underwritten)

Modified Issue Whole Life

May be appropriate for individuals with moderate health issues who couldn’t qualify for immediate coverage but want affordable permanent protection with a short Graded Benefit Period.
  • Health Questionnaire, no medical exam 
  • Lifetime Protectionn
  • Fixed premiums that never increase
  • Death benefit & Cash Value guaranteed, subject to policy terms

Pros:

  • Partial Death Benefit during first 2-3 years
  • Smaller coverage amounts
  • Higher cost per dollar of coverage
  • Slower cash value growth

Cons:

(No Health Question Asked)

Guaranteed Issue Whole Life

May be appropriate for individuals with who can’t pass a Medical Examination or Health Questionnaire due to serious health complications or multiple current / past health conditions who need guaranteed approval for basic end of life protection. 

Pros:

  • Guaranteed acceptance, no health review

  • Lifetime coverage once active

  • Fixed premiums that never increase

  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Graded Death Benefit, 2-3 year Return of Premium Waiting Period

  • Small coverage limits

  • Higher cost per dollar of coverage

  • Minimal cash value

(No Health Question Asked)

Guaranteed Issue Whole Life

May be appropriate for individuals with who can’t pass a Medical Examination or Health Questionnaire due to serious health complications or multiple current / past health conditions who need guaranteed approval for basic end of life protection. 

Pros:

  • Guaranteed acceptance, no health review
  • Lifetime coverage once active
  • Fixed premiums that never increase
  • Death benefit & Cash Value guaranteed, subject to policy terms

Cons:

  • Graded Death Benefit, 2-3 year Return of Premium Waiting Period
  • Small coverage limits
  • Higher cost per dollar of coverage
  • Minimal cash value

(Whole Life, Term Life, Universal Life,
or College Plan Life)

Children's Life Insurance

(Whole Life, Term Life, Universal Life, or College Plan Life)

May be appropriate for parents or guardians interested in planning for future financial goals such as potential college funding or securing coverage for a child’s future insurability. Some policy options may also allow cash value accumulation through fixed, non-indexed, or indexed interest crediting (subject to policy terms and performance).

Pros:

  • Available in WL, TL, UL, or College Plan Life

  • Locks in coverage while child is healthy

  • Lower cost than adult coverage

  • Some policies can build cash value via fixed, non-indexed, or indexed interest (subject to policy terms)

Cons:

  • Smaller coverage amounts

  • Generally limited cash value growth in early years

  • Indexed options carry added complexity and risk, performance is not guaranteed.

(Whole Life, Term Life, Universal Life, or College Plan Life)

Children's Life Insurance

May be appropriate for parents or guardians interested in planning for future financial goals such as potential college funding or securing coverage for a child’s future insurability. Some policy options may also allow cash value accumulation through fixed, non-indexed, or indexed interest crediting (subject to policy terms and performance).

Pros:

  • Available in WL, TL, UL, or College Plan Life
  • Locks in coverage while child is healthy
  • Lower cost than adult coverage
  • Some policies can build cash value via fixed, non-indexed, or indexed interest (subject to policy terms)

Cons:

  • Smaller coverage amounts
  • Generally limited cash value growth in early years
  • Indexed options carry added complexity and risk, performance is not guaranteed.

Universal Life 

(Indexed or Non-Indexed | Fully Underwritten)

May be appropriate for individuals seeking flexibility in temporary or long-term coverage that also accumulates cash value at guaranteed or index growth rates for future financial planning purposes.

Pros:

  • Builds cash value via interest subject to policy terms

  • Lifelong coverage (if funded & maintained properly)

  • Lower initial premiums over other Permanent Life 

  • Increase / Decrease Death Benefit within policy limits

Cons:

  • Cost of Insurance is not fixed

  • Policy Requires active management

  • Policy can lapse if underfunded

  • Policies are complex & fees can be high

Universal Life 

(Indexed or Non-Indexed | Fully Underwritten)
May be appropriate for individuals seeking flexibility in temporary or long-term coverage that also accumulates cash value at guaranteed or index growth rates for future financial planning purposes.

Pros:

  • Builds cash value via interest subject to policy terms
  • Lifelong coverage (if funded & maintained properly)
  • Lower initial premiums over other Permanent Life 
  • Increase / Decrease Death Benefit within policy limits

Cons:

  • Cost of Insurance is not fixed
  • Policy Requires active management
  • Policy can lapse if underfunded
  • Policies are complex & fees can be high

Accidental Death & Dismemberment 

May be appropriate for individuals with high-risk jobs or active lifestyles, focused on providing additional coverage in the event of a sudden accidental passing. 

Pros:

  • Extremely low cost
  • Fast, questionnaire based approvals
  • Adds extra protection to other policies

Cons:

  • Pays only for accident-related death
  • No illness or natural-cause coverage
  • No cash value

Accidental Death & Dismemberment 

May be appropriate for individuals with high-risk jobs or active lifestyles, focused on providing additional coverage in the event of a sudden accidental passing. 

Pros:

  • Extremely low cost

  • Fast, questionnaire based approvals

  • Adds extra protection to other policies

Cons:

  • Pays only for accident-related death

  • No illness or natural-cause coverage

  • No cash value

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