Which Life Insurance is the Cheapest?

Shawn Plummer

CEO, The Annuity Expert

Which Life Insurance is the Cheapest?

Term life insurance is generally the cheapest form of life insurance. The cost of life insurance policies typically increases from term insurance to universal life (UL) with guarantees and then to whole life insurance, which includes cash value and guarantees.

1. Term Life Insurance

2. Universal Life (UL) Insurance with Guarantees

  • Cost: More expensive than term insurance, but generally cheaper than whole life.
  • Flexibility: Offers flexible premiums and death benefits.
  • Cash Value: Accumulates cash value based on interest rates.
  • Guaranteed UL: A specific type of UL designed to provide lifelong coverage with guaranteed premiums and death benefits, without focusing on cash value accumulation.
  • Suitability: Suitable for those who want permanent coverage with more flexibility than whole life insurance.

3. Whole Life Insurance

  • Cost: Most expensive.
  • Coverage: Provides lifelong coverage with fixed premiums.
  • Cash Value: Accumulates cash value over time, which can be borrowed against.
  • Dividends: Some policies pay dividends, which can be taken in cash, left to accumulate, or used to decrease premiums or buy additional coverage.
  • Suitability: Ideal for individuals seeking lifelong coverage with a savings component and are comfortable with higher premiums.

Find life insurance that is tailored to your unique lifestyle and needs.

Term, UL, and Whole Life Insurance

Insurance TypeCostCoverage LengthCash ValuePremium FlexibilitySuitability
Term LifeLowestFixed termNoNoSpecific financial obligations
Universal LifeModerateLifelongYesYesPermanent coverage with flexibility
Whole LifeHighestLifelongYesNoLifelong coverage with savings


Term life insurance is the cheapest option for temporary coverage needs. Universal life offers more flexibility and permanent coverage at a moderate cost. Whole life insurance, while the most expensive, provides lifelong coverage with a savings component. The choice depends on individual financial goals, coverage needs, and budget.

Contact us today for a free quote and guidance on selecting the right life insurance for your needs.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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