What to Expect the First Year

What is the difference between term and whole life insurance?

Term life covers you for a specific period (10, 20, or 30 years) and is 5-15x cheaper than whole life. Whole life covers you permanently and builds cash value over time. Most financial advisors recommend term life for the majority of families — the savings can be invested elsewhere for better returns.

What is universal life insurance?

Universal life is permanent coverage with flexible premiums and a cash value component that earns interest. Unlike whole life, you can adjust your premium payments and death benefit over time. Indexed universal life (IUL) ties cash value growth to a stock market index with downside protection. It suits people who want permanent coverage with investment flexibility.

What factors affect life insurance premiums?

The biggest factors are age, health status, smoking history, coverage amount, and term length. Gender matters too — women typically pay 15-20% less than men. Your occupation, hobbies (skydiving, scuba diving), driving record, and family medical history also influence pricing. Most factors are assessed during the underwriting process.

What is the difference between an insurance agent and broker?

An agent represents one company and can only sell that company products. An independent broker works with multiple insurers and can shop the market to find the best coverage and rates.