Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 4, 2020

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It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

It can be a very overwhelming feeling when it comes to deciding what the best life insurance coverage is for you. With all the different coverage options how do you decide on one from another? This is a common concern to most people when they start their search for life insurance coverage.

We want you to know that at Top Quote Life Insurance you are not alone in your search for life insurance.

With a little time spent reading this article, we will break down the three primary types of life insurance, term life insurance, universal life insurance, and whole life insurance.

By familiarizing yourself with what each one of these types of life insurance coverage can provide you, we believe you will have no problem picking the best coverage that fits your needs.

When you are able to pick the best life insurance coverage for your needs, getting the best quote for the coverage will be a cinch.

Looking to compare life insurance policies? We can help. Enter your ZIP code to get free quotes from multiple insurers.

Table of Contents

Term Life Insurance Coverage

Term life insurance coverage is one of the most popular types of life insurance coverage since it fits most individuals’ needs. Most life insurance agents will agree that it is the best life insurance coverage when it comes to price.

As its name suggests, term life insurance coverage provides a guaranteed death benefit throughout a specific period of time, beginning with the initial policy date.

Term life insurance coverage commonly comes in fixed premium contract lengths of 10, 15, 20, 25 and 30 years. Depending on what coverage length you decide to go with, your premiums are guaranteed not to change.  In other words, pay one premium every until the end of the term coverage.

When a term life insurance policy comes to the end of its fixed premium period you will be given the option to continue coverage under the same policy. Continuing coverage under the same policy is generally very expensive after the fixed premium period has expired.

Another option that comes standard with most term life insurance policies is the option to convert a portion or all of the death benefit to permanent life insurance.

We often recommend doing this only if your health has declined since the purchase of your term policy as premiums for this coverage can be a bit expensive.

Out of the three types of life insurance coverage, term is by far the cheapest. Term life insurance is a perfect choice of coverage when your needs are high and temporary.

Temporary needs may include replacing a loss of income for a spouse during working years. Income for college education for your children. Income to replace mortgage debt.

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Universal Life Insurance Coverage

Universal life insurance coverage or often referred to as guaranteed universal life insurance (GUL). Universal life insurance is similar to whole life coverage minus the expensive premiums and dividends aspect.

Universal life insurance also offers a lifetime of protection, but at a cheaper cost than whole life insurance. The premiums for this coverage are cheaper because you are basically paying for the cost of the insurance spread out over an entire lifetime.

So why is it cheaper if you are paying for coverage spread out throughout my lifetime? Well, take away the savings account and dividends aspect.

Unless you are paying more than the required premium, universal life insurance does not gain nearly as much as a whole life insurance policy can.

Universal life insurance focuses on lifetime protection at a fixed rate. Many life insurance agents referred to universal life insurance as permanent term life insurance. The term insurance will eventually end, but universal life insurance is forever and has a forever fixed rate.

Another great feature of universal life insurance is the flexibility of the coverage. If your policy has cash value, you may be able to skip payments and the insurance company will draw the payment from the cash value to keep the coverage inforce.

Universal life insurance policies have come a long way since the 1980’s & 1990’s. Universal life insurance policies have received a bad rap because they never had the guarantees that they do now.

With guaranteed no-lapse fixed premiums and special features like a return of premium and long term care riders now with universal life insurance, we highly recommend this coverage when seeking lifetime life insurance coverage.

Whole Life Insurance Coverage

Whole life insurance coverage is the perfect coverage for someone who is looking for a lifetime of permanent coverage.  Whole life insurance will allow you to lock in a fixed premium, as well all the possibility to make some fairly decent dividends or cash within your policy.

Out of all three of the life insurance coverage options, whole life insurance is the most expensive. The younger you are when you purchase whole life the better.

Life insurance, in general, is always cheaper to purchase when you are younger rather than later in life, especially whole life.

You may ask yourself why purchase whole life insurance if it’s so expensive? By purchasing whole life insurance think of it as a savings account with higher interest rates than what your bank can offer which can lead to some very nice cash values.

Another reason for paying higher rates for whole insurance is because you are paying for the coverage, in advance, over a lifetime. The increased cost of the insurance at your later years is spread out evenly throughout your life resulting in a fixed premium.

As stated earlier, whole life insurance policies have the opportunity to gain dividends. Dividends can be used to reduce your premium, pay for paid-up life insurance coverage or used to borrow money from the policy just like getting a loan from a bank.  It is important to know that dividends are not guaranteed.

Whole life insurance can make for a great life insurance option for either children or adults.

Quotes for Getting the Best Life Insurance Coverage

Top Quote Life Insurance specializes and offers term life insurance coverage, whole life insurance coverage and universal life insurance coverage.

Looking to compare life insurance policies? We can help. Enter your ZIP code to get free quotes from multiple insurers.