What does life insurance do?
Life insurance pays money, called the death benefit, to the people you name if you die while the policy is active. The people you name are your beneficiaries.
What the money is for is the real question. For most families we sit down with, it's some mix of paying off the mortgage, replacing a paycheck for a stretch of years, covering a funeral, and getting the kids through school. Name those, and the amount and type of policy mostly follow.
What's the difference between term, whole, and universal life?
Term life covers you for a set number of years. Whole and universal life are permanent policies, built to last your lifetime as long as the policy stays in force.
| Type | How long it lasts | Cash value | Premiums |
|---|---|---|---|
| Term | A set period, such as 10, 20, or 30 years | Typically none | Often stay level during the term |
| Whole | Your lifetime, if premiums are paid | Can build cash value over time | Typically fixed |
| Universal | Your lifetime, if the policy stays funded | Can build cash value; growth depends on the policy | Flexible, within the policy's limits |
Scroll sideways to see the whole table.
People often choose term to cover a specific stretch, like the years until the kids are grown or the mortgage is paid off. Permanent policies typically cost more for the same death benefit, but they are designed to last.
If you borrow against or withdraw cash value, that can reduce the death benefit your beneficiaries receive. An unpaid loan can also cause a policy to lapse.
We don't give tax or investment advice. For questions about taxes or how a policy fits your finances, talk with a tax professional.
How much does life insurance cost?
It depends on your age, health, policy type, and coverage amount, so a quote is the only way to know your price. In our experience people guess high, and there's research that says the same. A 2025 study by LIMRA (opens in a new tab) found that adults age 30 and younger overestimated the cost of term life insurance by about 10 to 12 times.
What does life insurance usually not cover?
Most policies pay for most causes of death, but there are common limits. The exact terms depend on your policy.
- Outliving a term policy: a term policy typically pays nothing if you're alive when the term ends.
- Missed premiums: if premiums go unpaid past the grace period, the policy can lapse.
- Early review period: for a set time after the policy starts, the insurance company can review a claim closely. Wrong or missing answers on your application can lead to a denied or reduced claim.
- Suicide: most policies limit the payout for suicide during an early period after the policy starts.
Do I need a medical exam?
You might. Life insurance involves underwriting, which means the insurance company reviews your health and history before it decides whether to offer coverage and at what price.
That can mean a medical exam, health questions, or both. Answer every question honestly, including the ones that feel unflattering. A wrong answer can cause trouble for your family later, when it matters most. The insurance company makes the final decision.
How we work on life insurance
We start with the family, not the brochure. Who depends on your income? What would need to be paid off? How many years until the youngest is on their own? We put a number on that together, and only then do we talk about term versus permanent and what each would cost. The point is that the policy fits the people it's for.
You can do this across a desk from us, which many buyers want. LIMRA's 2025 study (opens in a new tab) found that 42% of young adults would prefer to buy from a financial professional in person. Visit us at 948 W Madison St in the West Loop, or at our Southwest Side, Burr Ridge, or Phoenix offices. We speak English and Spanish, and weekend appointments are available. If your family ever needs to file a claim, they can call us first. See our claims page.
What to have ready when you call
When you're ready, call us for a quote.
- Date of birth, height, weight, and whether you use tobacco or nicotine
- Your health history and a list of current medications
- About how much coverage you want, and for how many years. If you don't know, that's what the call is for.
- Your income, mortgage balance, and other debts you'd want paid off
- Who you want as your beneficiaries, and a backup
- Any life insurance you already have, including coverage through work
Common questions
How much life insurance do I need?
Enough to replace your income for the years your family would need it, plus debts and future costs, minus savings. Many people add up the income their family would need to replace, their debts, and future costs like college, then subtract what they've set aside and any coverage they already have. We can walk through it with you in one call.
Is the life insurance from my job enough?
It may not be. Coverage through work is often a set amount, and it may end if you leave the job. Many people add their own policy so their coverage doesn't depend on where they work.
Can I change my beneficiaries later?
Most policies let you update beneficiaries by sending a form to the insurance company. Review them after a marriage, divorce, or new baby. It's a five-minute task people put off.
Who can I contact with a concern about a life insurance company?
Call us first and we'll help. In Illinois, you can also call the Illinois Department of Insurance (opens in a new tab) Consumer Assistance Hotline at 866-445-5364. In Arizona, contact the Arizona Department of Insurance and Financial Institutions (opens in a new tab).