Life Insurance:

Life Insurance is one of the most important financial tools for protecting the people you love. It provides stability when unexpected loss occurs, ensuring your family has the resources they need for immediate expenses, long-term plans, and future security.

While Ruly Insurance primarily focuses on Term Life Insurance, it’s important to understand how the different types of coverage work — including Whole Life, Universal Life, and Final Expense policies.

Below is a clear breakdown of each type, how they differ, and how to determine which fits your needs.

Types of Life Insurance

1. Term Life Insurance (Most Common and Cost-Effective)

Term Life provides coverage for a set period — usually 10, 15, 20, 25, or 30 years.
It pays a death benefit if the insured person passes away during the term.

What It’s Best For

• Families needing affordable protection

• Income replacement during working years

• Mortgage or debt protection

• Parents with young children

• Business or partnership coverage

Key Benefits

• Highest coverage amount for the lowest cost

• Simple, predictable structure

• Flexible term lengths

• Convertible with some carriers (term → permanent options)

Considerations

Premiums increase significantly if renewed after the initial term ends, due to your older age.

2. Whole Life Insurance (Permanent Coverage with Cash Value)

Whole Life provides lifelong coverage with a guaranteed death benefit and a savings component called cash value.

What It’s Best For

• Long-term estate planning

• People wanting permanent coverage

• Those who value guaranteed premiums

• Savings accumulation alongside insurance

Key Benefits

• Coverage lasts for life

• Fixed premiums

• Guaranteed cash value growth

• Potential dividends depending on the carrier

Considerations

• More expensive than term life

• Not ideal for short-term or budget-focused protection

• Withdrawals lower death benefit of policy.

3. Universal Life Insurance (Flexible Permanent Coverage)

Universal Life (UL) offers lifetime coverage with flexible premiums and adjustable death benefits. It includes a cash value component with interest tied to a credited rate or market index.

What It’s Best For

• People needing long-term coverage with flexibility

• Those who may want to adjust premiums over time

• Estate or business planning

Key Benefits

• Adjustable payments and death benefit

• Potential for tax-deferred cash value growth

• Can be structured for lifetime guarantees

Considerations

• Performance depends on market conditions or interest rates

• Requires active management to avoid lapsing

• Complex for inexperienced policyholders

4. Final Expense (Burial Insurance)

Final Expense insurance is a small permanent life policy designed to cover:

• Funeral costs

• Burial or cremation

• End-of-life medical bills

• Small debts

What It’s Best For

• Seniors wanting affordable lifetime coverage

• People needing guaranteed acceptance (in some cases)

• Families who want to avoid out-of-pocket funeral expenses

Key Benefits

• Permanent coverage

• Simplified underwriting

• Small, predictable premiums

• Designed specifically for final expenses

Considerations

• Lower coverage amounts ($5,000–$25,000)

• Higher cost per dollar than term life

Why Life Insurance Matters

Life Insurance creates a financial safety net that can help cover:

• Income replacement

• Mortgage or rent

• Debts or loans

• Funeral and final expenses

• Childcare or education

• Long-term household needs

The right policy helps your family stay on stable financial ground during a difficult time.

How Much Coverage Should You Have?

A common guideline is the 10–15x income rule, but actual needs vary. It’s more important to consider and total what you would want the payout to go towards.

Here are a few things to consider:

• Income replacement goals

• Mortgage or rent

• Children’s education

• Existing savings

• Outstanding debt

• Long-term financial plans

A needs-based review with your agent is the best way to determine an accurate amount.

Factors That Affect Your Policy

Life insurance premiums depend on:

• Age

• Health history*

• Tobacco use

• Lifestyle and hobbies

• Occupation risks

• Coverage amount and type

• Policy length (for term life)

You’ll lock in better rates by applying earlier in life.

*Minor Medical Examinations are commonly required for acceptance.

Common Misconceptions

“Life insurance is only needed when you’re older.”

You get the best rates when you’re younger and healthier.

“My employer policy is enough.”

Group coverage is a helpful perk but usually too small and not portable.

“Permanent insurance is always better.”

Permanent policies offer lifelong coverage, but term life is often the best fit for most families’ needs and budgets.

“I don’t need life insurance if I don’t have kids.”

Life insurance can still protect partners, cover debts, or provide funds for final expenses.

The Takeaway

Life Insurance is a foundational part of financial security. Whether you choose Term, Whole, Universal, or Final Expense coverage, the goal is the same: protecting the people who depend on you.

The right policy ensures your family can focus on healing, not financial hardship.