Life insurance is a financial contract between a policyholder and an insurance company. The premium charged by insurance company is regulated by the insurance department in each state. In exchange for regular premium payments, the insurer promises to pay a lump sum—called a death benefit—to your chosen beneficiary when the insured person passes away. Death benefits are paid for accidental causes of death as well as natural causes. Some policies also include living benefits or long term care benefits, which let you access part of your coverage while you’re alive if you experience a terminal illness, critical illness, or another qualifying life event.
The main purpose of life insurance is to protect your loved ones from financial hardship and provide peace of mind.
Types of Life Insurance
Life insurance comes in two main categories: Term (Temporary) and Permanent coverage, each designed for different goals.
Term Life Insurance
- Coverage for a set period (typically 10–30 years)
- No cash value or loan options
- Health underwriting is required; never guaranteed issue
- Some policies offer limited living benefits for terminal illness
- Often the most affordable way to protect income, debts, and major expenses
Best for: Maximum coverage at the lowest cost during a defined period of time (10-40 years) for protecting an income stream from employment. Coverage for the “what-ifs” or unanticipated loss of life.
Permanent Life Insurance
There are 2 main types of permanent life insurance to consider, whole life insurance and universal life insurance. Each has subcatagories, but beyond a life insurance basics page.
Whole Life Insurance
- Fixed premiums and guaranteed death benefit
- Guaranteed Cash value you can borrow from
- Optional dividends for participating policies
- Smaller face amounts available for budget-friendly permanent protection
- Oldest form of life insurance -Stalwart financial protection
- Small policies for high risk applicants are often called Graded Benefit or Guaranteed Issue Whole Life
Final Expense Life Insurance
Final Expense or Burial Insurance is just a common whole life insurance product on the market. They are smaller than typical whole life policies and designed for a more specific intent. Typically, no-exam is required. Some are even guaranteed issue. We have added these here to clairify the subtle difference from large, traditional whole life policies.
Final expense insurance policies are designed to primarily cover burial costs, funeral expenses, and other end-of-life bills. It’s easier to qualify for than larger policies and can be a good fit for seniors or those with health challenges. Learn about final expense insurance coverage →
Whole life is ideal for families seeking long-term peace of mind and a guaranteed payout especially if your health is less than good.
Universal Life Insurance (UL)
- Adjustable premiums and death benefits
- Cash value with a minimum guaranteed interest rate
- Some policies tied to market indexes (Equity Indexed UL IUL)
- Flexible coverage; can be more complex but potentially more affordable than whole life
- Many clients prefer Guaranteed Universal Life (GUL) for term-like pricing, lifetime coverage. Coverage amounts start at $50,000. GUL does not accumulate cash value like other Universal Life Insurance policies
Who Needs Life Insurance & How Much?
Life insurance is important if you have dependents, debts, or want to leave a legacy. The right amount depends on your mortgage, living expenses, college costs, and final expenses. Consider:
- Mortgage or rent
- Ongoing living expenses
- College costs for children
- Funeral and final expenses
What Affects Life Insurance Cost?
- Age and health
- Gender
- Driving record
- Occupation hazards
- Lifestyle choices
- Coverage amount
- Policy type (term vs. permanent)
Permanent coverage generally costs more than term, but affordable options exist even for individuals with health challenges when guided by an experienced broker.
Trusted National Coverage & Local Expertise
We work with clients across the United States and are licensed in over 30 states as a broker. Whether you reside in Michigan or a 1000 miles away, we can meet by phone or Zoom to find coverage that fits your needs.
As a national broker, we have a business relationship with many top-rated national insurance carriers. This gives you access to numeous options. Our job is to compare insurance companies and policies side by side, explain the pros and cons, and help you make a confident choice.
For full local service details in Southwest Michigan, see our page life insurance in Southwest Michigan.
“We live in Florida but also have a home in Michigan. Working with Maple Valley Insurance was easy and stress-free. Mike was able to find us the insurance we were looking for.” – A. Tyler, Hobe Sound, FL
Talk to an Independent Life Insurance Expert
📞 Call 269-244-3420 for your free consultation—our expertise never costs you a nickel.
Get a basic quote instantly using the widget on this page. You may also check out our National Service Map to confirm licensure in your state.
Final Thought: Life insurance doesn’t have to be overwhelming. By understanding your options and working with a knowledgeable broker, you can confidently choose coverage that protects what matters most.