Life insurance guide
Life insurance
Life insurance pays your family a lump sum if you die, so the mortgage, the bills and your income don't disappear with you. The type you choose decides how long the coverage lasts and whether it also builds cash value.
What it is
You pay a monthly premium. In exchange, the people you name receive a lump sum if you die while the policy is in force. That money covers the mortgage, the children's school and the bills that keep coming.
It is the most straightforward financial product there is, and the one most people put off. The younger and healthier you are when you apply, the less it costs. Every year you wait, it costs more.
How it works
Four types, four different jobs.
Most families need one or two of these, not all four. A plan starts with the job, then picks the type.
Term life
Coverage for a set number of years at the lowest cost. Built for the years your family depends on your income.
Whole life
Coverage for life with a fixed premium and cash value that grows at a guaranteed rate, whatever the market does.
Indexed universal life
Permanent coverage with flexible premiums and cash value linked to a market index, with a floor against losses.
Final expense
A smaller whole life policy for funeral costs and last bills, usually with no medical exam.
Who it suits
What it does for your family.
They keep the house
Your mortgage doesn't end when you do. Life insurance means your family can stay in their home.
The bills get paid
Car loans, credit cards and medical bills land on someone. It shouldn't be a grieving spouse.
Your income continues
If your family depends on your paycheck, life insurance replaces it for years, not months.
The children's plans hold
College funds, activities and the life you planned for them don't have to change.
Cost
What decides the price.
Your age, your health, the amount of coverage, the type of policy and, for term, the number of years. Term costs least per dollar of coverage; permanent policies cost more because they last for life and build cash value.
Each carrier prices health differently. Because we work with 47+ A-rated carriers, we can look for the one that treats your situation best instead of accepting one company's answer.
Coverage and pricing depend on underwriting, eligibility, state availability, and carrier approval.
Side by side
The main types compared.
| Topic | Term life | Whole life | Indexed universal life | Final expense |
|---|---|---|---|---|
| How long it lasts | 10 to 30 years | Lifetime | Lifetime | Lifetime |
| Premium | Fixed for the term | Fixed | Flexible | Fixed |
| Cash value | None | Guaranteed growth | Linked to an index | Small |
| Usual job | Income and mortgage years | Estate and lifelong needs | Growth and flexibility | Funeral and last bills |
Before you decide
Why families work with an independent firm.
We compare, you choose
Going to one insurance company is like checking one airline for flights. We compare 47+ carriers so the plan isn't limited to one price list.
Advice, not a quota
We don't work for an insurance company. If you don't need a policy, we'll tell you. If you need more than you think, we'll show you why.
Questions and answers
What people ask us.
How much life insurance do I need?
A common rule of thumb is 10 to 12 times your annual income, but the right amount depends on your debts, your dependents and your goals. We work it out need by need: the mortgage, the income years, the children's education and final expenses.
Is life insurance tax-deductible?
Premiums usually aren't, but death benefits are generally income tax-free for your beneficiaries. Some permanent policies also offer tax advantages on cash value growth.
Can I get life insurance if I have health issues?
Yes. There are options for many health conditions, and carriers differ in how they treat each one. As an independent firm, we look for the carrier that suits your situation.
Related guides
Read next.
Term life insurance
Coverage for a set number of years, at the lowest cost. Built for the years your family depends on your income.
Read the guideWhole life insurance
Coverage that never expires, with a fixed premium and guaranteed cash value.
Read the guideFinal expense
A smaller whole life policy for funeral costs and last bills, usually with no medical exam.
Read the guideFind out what your family would need.
Thirty minutes, no obligation. We'll go through each need and the coverage that fits it.
- Call or text
- (480) 999-9040
- seb@falconfinancial.org