Whole life insurance is a type of permanent life insurance that provides coverage for the insured’s entire lifetime, as long as premiums are paid. In addition to a guaranteed death benefit, it includes a savings component known as “cash value,” which grows over time on a tax-deferred basis. Policyholders can borrow against this cash value or even withdraw funds, though doing so may reduce the death benefit. Whole life insurance tends to have higher premiums than term life, but it offers lifelong protection and financial flexibility.

Final expense insurance is a type of whole life insurance designed specifically to cover end-of-life costs such as funeral expenses, medical bills, and small outstanding debts. Often called burial or funeral insurance, it typically offers coverage amounts between $2,000 and $50,000 and is easier to qualify for than traditional life insurance, with many policies requiring no medical exam. Premiums are usually fixed for life, and the policy remains active as long as payments are made. Upon the insured’s death, the beneficiaries receive a tax-free lump sum that can be used for any purpose, helping to ease the financial burden during a difficult time.

Mortgage Protection Life Insurance is a type of term life insurance designed to pay off your mortgage if you pass away during the policy’s term. The coverage amount typically matches your remaining mortgage balance and decreases over time as you pay down the loan, but your premiums stay the same. Unlike traditional life insurance, the death benefit goes directly to your mortgage lender—not your family—ensuring the home is paid off and your loved ones aren’t burdened with mortgage payments. It’s often marketed to homeowners at the time of purchase and may not require a medical exam, making it accessible for those with health issues. However, it offers less flexibility than standard term life policies, which allow beneficiaries to use the funds as needed.