Term Life policies have set premiums with a guaranteed death benefit if you die before the end of the policy’s term. You pay the premiums on a regular basis and if you pass away before the insurance expires, your chosen beneficiaries receive the benefit.

For same-sex couples who are unmarried, or whose marriage is not legally recognized in their state, you should still be able to designate your partner as your beneficiary.

Whole life is different than term because it has a cash value that builds up during the lifetime of a policy. As long as you pay the insurance premiums, your coverage and portion go into a tax-deferred savings vehicle. Eventually, this policy will have a cash value that you can borrow against or withdraw. The premiums on whole life are significantly higher but the returns are worth it.

• If there are any expensive medical emergencies (for you, your spouse/partner, or your children) you can borrow funds from the cash accumulated in the policy.
• Once the cash value of the policy grows, it can be used to pay your premiums, thus lowering your monthly expenses.

There are also riders available for your policy that can be added for Living Benefits, Disability Waiver of Premium, Income Protection Options, and more.

Guaranteed life insurance policies are a type of insurance that does not require you to take a medical exam or answer any health questions. It is for people who have concerning health issues which may keep them from buying other types of policies. Usually, the policies range between $5,000 and $25,000. This money is used to cover the cost of funerals and end-of-life expenses.

Universal Life policies are used when you are more concerned about cash value build-up versus a death benefit. The premiums are usually less than whole life and the cash value accumulation is usually greater, but the death benefit is significantly reduced. The point is you get to choose what best fits your lifestyle.