Which Life Insurance Policy Should I Get?

Life insurance is the MOST IMPORTANT thing for your family when you pass away. However, if they discover you have the wrong type of policy that does not pay out to them , it could be devastating for them. Moreover, all the premiums you paid for all those years would be a complete waste.

Life Insurance, with all its forms and riders, is confusing and challenging to understand. There is a reason agents have to pass a state licensing exam to get licensed. Many nitty-gritty details that only insiders are aware of compound the complexity of the products.

At Octans Insurance, we strongly believe in educating people about the value of life insurance as a financial tool to secure their future. In fact, life insurance can be a tool to address several of life’s problems. If you want to know more, check out our blog section. We will be happy to answer any questions you have about life insurance, so do not hesitate to email us at life@octansinsurance.com.

Here is a simpler overview of the different types of features available with various policies-

	Premium	Cash Value Option	Coverage Length	Death Benefit
Whole Life	Fixed. Never Increases	Yes	Lifetime	Fixed
Term Life	Increases when term renews.	No	Temporary (depending on your term, usually 10, 20 or 30 years)	Fixed
Universal Life	May Increase	Yes	Lifetime	Flexible
Burial/Final Expense	Fixed. Never Increases	Yes	Lifetime	Fixed

You want to make sure you’re getting the right policy for you from a reliable company that pays out. You may be able to get cheaper insurance out there like all the 9.95 plans you see the commercials on TV about. However, there is no point if they don’t pay your family when you pass away or delay the payment stating various vague reasons.

This is why our trusted agents are here to help you find the right product and the right insurer for your family. All our agents are independent, which means they don’t work for one specific company. We are an independent insurance agency, so we compare options from many insurers and focus on what fits your needs.

So, instead of pitching a product from specific companies, we will compare prices from different insurers and discuss what the best option would be for you. We can recommend a range of products from different companies based on your needs. You can also get a neutral and accurate assessment of different company policies from our experienced agents. Check out our review page for in depth individual company product assessments.

Now, what life insurance policy is right for you?

Well, there is no easy answer and you’ve probably heard already- it depends on your life situation. For an in-depth evaluation you would need to talk to one of our experts who will hear you out and try to match you to a product.  We are transparent in what certain policies can or cannot do for you. So for your convenience, here are the pros and cons of different types of

Policies-

	Pros	Cons	Best For…
Term Life	Simple, easy to get, fast approval.   Low-Cost Large death benefit but relatively affordable   In certain types of policies (ROP), you can get all your premium back after policy expires.   In certain policies, you can convert it to permanent life insurance without another medical exam.   No Cash value option that you can borrow against.	Coverage is temporary, it expires when your term is up.   Premium will increase if you want to renew your term as your age has also increased.   It may be difficult to get life insurance at the end of your term if you are in poor health.	Short term financial protection like Income replacement Mortgage Protection   Your spouse or partner can cover the immediate expenses that were previously covered by your income in the event of your untimely death.
Whole Life	Permanent, never expires. Guaranteed death benefit.   Premium Never Increases     Beneficiaries will be paid tax-free death benefits regardless of when you pass away.   Some mutual insurers will pay lifetime dividends. Your policy will accrue cash value that you can borrow against if you need it,   Accelerated death benefit options and various additional benefits (riders) available.	Relatively expensive because of added benefits.   Harder to get approved if you are in poor health, but guaranteed issue policies are available.   Less flexible than some other types of policies where you have the option to adjust your premium if there’s a change in your financial situation.	Those who want lifetime security and leave a legacy for their family.   It is a straightforward, permanent policy that can change the financial trajectory of your future generations.
Universal Life (several different types of policies fall under this umbrella)	Flexible Premium Less expensive than Whole Life policies. Accrues cash value that you can borrow against. Different riders are available.	More Expensive than Term.   Growth of cash value and death benefit is not guaranteed as it grows based on market interest rates	People want permanent coverage that can adapt to future needs.   For those who want to leave a legacy and pass on their wealth to future generations.
Final Expense	Permanent, never expires.  Premium never increases.   Death benefit is guaranteed.   Medical Exam typically not required   Grows cash value that you can borrow against.	Death benefit is usually small, often $5,000 to $25,000 or more, depending on the insurer.	People who want to cover their funeral/burial or other end of life.   More accessible to seniors as these policies get approved despite poor health conditions.

Now, if you have reached the end of this article, congratulations! That was a LOT of information to take in, and we are sure some of it may still be confusing. Again, it’s worth mentioning that life insurance agents must pass a state licensing exam and keep up with continuing education requirements that vary by state. So, it’s only natural if you are still not sure which would be the best option for you. And that is exactly why we are always here for you! Email us at life@octansinsurance.com or call (617) 935-9220.

Fill out this form to get a free consultation with an expert, without any added pressure to purchase anything. We are committed to giving back to the community and love to talk to people who are interested in learning more about life insurance.

What Type of Life Insurance Should I Get? A Quick Guide

Still asking “what type of life insurance should I get?” Start with how long you need coverage:

• A need that ends (a mortgage, children at home, income replacement): term life is usually the best type of life insurance for the money.
• A need that lasts for life (funeral costs, an inheritance, a lifelong dependent): whole life, guaranteed universal life or final expense coverage fits better.
• Both: many families combine a large term policy with a small permanent policy.

There’s no single best type of life insurance for everyone. It depends on your goals, budget and health. See our term vs. whole life comparison, or ask a licensed agent which life insurance policy to get for your situation.

Which life insurance policy to get at each stage of life

Most people do not need to compare every product. Which life insurance policy to get depends mostly on how long your need lasts. Start with your situation. The table below shows where people in common situations usually begin. It is a starting point for a conversation, not a recommendation for you. To weigh the two main types side by side, see term vs whole life insurance.

To size the policy, use our guide on how much life insurance you need.

Which riders are worth asking about?

A rider is an add-on to a policy. The NAIC notes that riders let you add coverage that isn’t in the base policy, but they also raise your premium (NAIC). These are the riders the NAIC describes:

• Waiver of premium. You can stop paying premiums if you develop a covered illness or disability. Ask how long you must wait before the waiver starts.
• Accelerated death benefit. You can take part of your death benefit early if you are diagnosed with a terminal illness. Ask which illnesses qualify and how much stays for your beneficiaries.
• Accidental death. Pays more if you die in an accident. The NAIC says some riders pay two to three times the death benefit for certain accidents. Check how the rider defines an accident.
• Guaranteed insurability. Lets you buy more coverage later without proving your health. The cost depends on your age and the increase, not your health.
• Long-term care. Lets you use part of the death benefit for long-term care. There may be a limit on how much you can use.

Ask for the price of each rider on its own. If a rider costs a lot, more base coverage may serve your family better. See life insurance with living benefits for more.

Fully underwritten, simplified issue or guaranteed issue?

Underwriting is how an insurer decides whether to cover you and at what price. If your health is not perfect, the underwriting path can matter as much as which life insurance policy to get. It shapes how much you can buy and when full coverage starts.

With one guaranteed issue policy, a natural-cause death in the first two years pays 110% of premiums paid instead of the full benefit (Navy Mutual). That is why it makes sense to try for simplified or full coverage first. Learn more about no-exam life insurance and guaranteed issue life insurance.

How do you read a policy illustration?

If you look at whole life or universal life, the agent may show you an illustration. It is a table that projects premiums, cash value and death benefit over many years. The NAIC explains that it mixes two kinds of numbers (NAIC, Life Insurance Illustrations):

• Guaranteed values are fixed when the policy is issued. These are the numbers you can count on.
• Non-guaranteed values are projections that can change, such as dividends or current interest credits. They cannot fall below the policy’s minimum guarantees.

When you read one, follow these steps:

1. Find the guaranteed column first, and ask whether you would still buy the policy if only those numbers came true.
2. Check the age when cash value or coverage would run out under guaranteed assumptions.
3. Look for your signature and the agent’s. The NAIC says an illustration used in the sale should be signed by both of you and sent in with the application.
4. If the numbers change before the policy is issued, the new version should say “Revised Illustration.”

What is the free-look period?

A free-look period lets you cancel a new policy and get your money back. In Massachusetts, an individual life policy with a face amount under $25,000 must include a notice that you may cancel within ten days of its delivery. If you return it, the premium is refunded and the policy is treated as void from the beginning (M.G.L. c. 175, § 187H).

Other states set their own rules, and larger policies often state their own window. Look for the cancellation notice on the first pages of your policy. Use those days to read the whole contract, check that the beneficiary names are spelled right, and confirm the premium matches what you were told.

Know the other clock, too. Massachusetts requires that a policy become incontestable once it has been in force during your lifetime for two years, with limited exceptions such as nonpayment (M.G.L. c. 175, § 132). Answer every health question honestly so a claim is not challenged in those first two years.

Red flags when deciding which life insurance policy to get

Choosing which life insurance policy to get is also about choosing whom to trust. Watch for these warning signs, most drawn from NAIC consumer guidance:

• You are asked to pay the agent. The NAIC says to make your check payable to the company, not the agent.
• Pressure to drop a policy you already have. The NAIC warns not to drop one policy and buy another without a thorough study, because replacing coverage may be costly.
• Projected values sold as promises. If an agent talks about non-guaranteed numbers as if they were certain, ask to see the guaranteed column.
• A blank or rushed application. Don’t sign until you have read it. Wrong health answers can cause problems at claim time.
• An agent you can’t verify. Your state insurance department lists the agents and companies licensed in your state.
• A permanent policy you may not keep. The NAIC notes it can be very costly to quit during the early years. Make sure the premium fits your budget for the long run.

For context on cost, MoneyGeek’s published sample for a healthy 40-year-old non-smoker is $28 a month (female) or $35 (male) for $250,000 of 20-year term (MoneyGeek, updated Oct. 11, 2026). Samples, not a quote.