Life Insurance, Explained Without the Sales Pitch

• 51%of U.S. adults own any life insurance, per the 2025 Insurance Barometer
• 74MAmericans say they need life insurance but do not have it
• 25Mmore say they have some coverage but not enough

The main types, side by side

Every policy falls into one of two families. Term covers you for a set number of years. Permanent covers you for life and usually builds cash value. Inside those families there are a few versions worth knowing.

• Term life. Coverage for 10, 15, 20, 25 or 30 years at a level price. The most coverage for the least money. Built for raising kids and paying off a mortgage.
• Final expense. Small whole life policies, often $5,000 to $50,000, for funeral costs and final bills. Simple health questions, and some need none at all.
• No exam life insurance. Term or permanent coverage approved from your answers and records, often in minutes, with no needles and no nurse visit.
• Living benefits. Policies that let you use part of the death benefit early if you have a serious illness.
• Whole life and indexed universal life. Permanent coverage with cash value. Useful for some people, but expensive per dollar of coverage, so I only suggest it when there is a clear reason.
• Children's life insurance and accidental death insurance fill narrower needs.

How much coverage do you need?

A simple starting point is the income your family would lose, plus debts you would want cleared, plus big future costs like college, minus savings and any coverage you already have. For many working parents that lands somewhere between 10 and 15 times their yearly income. It is a starting point, not a rule. A stay at home parent needs coverage too, because replacing childcare and household work costs real money.

Coverage through work is a nice extra, but it usually ends when the job ends, and it is often only one or two times your salary. I treat it as a bonus, not the plan.

Why people put it off, and why that costs them

Most people think life insurance costs far more than it does. LIMRA's 2026 research found adults under 31 guess the price of a basic $250,000, 20 year term policy at about five to six times what it really costs. Prices are set by your age and health on the day you apply, so waiting rarely makes it cheaper.

What a broker does here

I am an independent broker, so I can compare policies from several insurers instead of selling one company's product. Insurers judge the same health history very differently. One may rate a person with controlled blood pressure or diabetes far better than another. Shopping that for you is the whole value of using me, and it does not add to your price.

Bottom line

Decide the job first, then the type, then the amount. For most families that means a term policy sized to replace income until the kids are grown and the house is paid off. If you want a second opinion on a policy you already own, I am happy to look at that too.

Common questions