United Benefits - Life Insurance



Life Insurance

Life insurance is essential when protecting your family in the event anything should happen to you or a loved one. From covering burial costs, ensuring your mortgage is paid, replacing income for your family, and creating your legacy for your estate, there are different life insurance plans to fit your needs.

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What is life insurance?

Life insurance is a contract between the policy owner and the insurer. The policy on life insurance guarantees that the insurer will pay out a lump sum of money to any beneficiaries named on the policy when the insurer dies. The policyholder pays premiums throughout their life to keep their policy in good standing.

What are the three main types of life insurance and the differences between them?

There are three main types of life insurance: term life, whole life, and universal life. While all are good options, they have differences that may make one option better for your needs.

Term Life Insurance

As the name suggests, this policy covers your life for a period of time (called the term) you pick. Terms can range from 1 to 30 years or more. Term life insurance is the most affordable option because it only pays if you die during the term covered. In addition, it offers income replacement or mortgage protection, appealing to anyone who has dependents or younger children. Term life insurance is a solid choice for people who want to cover any financial obligations that come with raising a family and supporting them in the event of their death.

Universal Life Insurance

You may hear this referred to as a flexible premium plan. Universal life insurance is a hybrid option that you can build to mimic a whole or term policy. They have customizable terms allowing you to choose coverage from 10 to 100 years. The plan flexibility is a significant draw, as is the ability to use it like a term or whole policy. A Fixed Index Universal Life Plan is an excellent choice if you’re trying to build your retirement income tax-free.

Whole Life Insurance

Whole life insurance is also known as traditional life. Whole life insurance provides coverage up to 100 years of age before it pays out to you. At age 100, this plan endows and will go ahead and pay you your death benefits. Unlike term policies, this policy never expires. Your beneficiary will get the benefit paid directly to them upon your death, no matter how long you’re alive. In addition, it builds a cash value account that works well for wealth building and retirement planning, and it could pay dividends directly to you if you go with a mutual company. The policy premium is locked in for the duration and will never change.

What does life insurance cover?

Life insurance gives a death benefit for the beneficiaries on the policy after the policyholder’s death which can help reduce any financial burden associated with settling your affairs. This includes debt settlements, funeral costs, income replacement, and the estate. Debt settlements, funeral costs, income replacement, and planning the legacy for your estate often come to mind when thinking of end-of-life planning.

One of the biggest reasons people get life insurance is peace of mind. Easing financial stress on your loved ones when you pass and knowing that they’ll get a death benefit to help settle your affairs can be a massive weight off of your mind. In addition, life insurance can help support your family and keep them in the lifestyle they’re accustomed to when you die.


If you’re interested in protecting your life, we’re here to help. A United Benefits Specialist will help you explore your options.

Get in touch with a United Benefits Specialist

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