Life Insurance Types Explained: Which One Do You Need?

Life insurance is one of the most important financial protections you can provide for your loved ones. But with so many types available, choosing the right policy can be confusing. Here is a breakdown of the main types.

Term Life Insurance

Term life provides coverage for a specific period (10, 20, or 30 years). If you pass away during the term, your beneficiaries receive the death benefit.

Best for: Young families, mortgage protection, income replacement during working years

Pros: Affordable, straightforward, flexible terms
Cons: No cash value, coverage ends when term expires

Whole Life Insurance

Whole life provides lifelong coverage with a guaranteed death benefit and builds cash value over time.

Best for: Lifetime coverage needs, estate planning, leaving a legacy

Pros: Permanent coverage, cash value grows, fixed premiums
Cons: Higher premiums than term, less flexibility

Universal Life Insurance

Universal life combines permanent coverage with flexible premiums and adjustable death benefits.

Best for: Those wanting permanent coverage with flexibility

Pros: Flexible premiums and benefits, cash value potential
Cons: More complex, returns not guaranteed

How Much Coverage Do You Need?

A common rule of thumb is 10-15 times your annual income, but the right amount depends on outstanding debts, future expenses (college, mortgage), your family lifestyle needs, and existing savings and assets.

At JKJ Enterprises, we help you find life insurance that fits your needs and budget. Contact us for a free consultation.