Hayden MatthewsLezama Legacy Assurance
Home / Coverage types
Dear friend,
Think of your family as a tree. Every branch is a different way to look after it, and the roots are the plan underneath.
Tap a branch to read what it is, how it works and who it often fits. In plain English or Spanish.
tap a branch
A simplified type of whole life insurance designed to help cover funeral and end-of-life costs, so your family is not left with the bill.
Small permanent policies, often between about $5,000 and $40,000 depending on the carrier. The policy is meant to stay in place for your whole life as long as premiums are paid, and the benefit can help with a funeral, burial or cremation, medical bills and small debts.
Temporary life insurance that lasts for a set number of years. It provides death benefit protection without cash value, which is why it often costs less than permanent coverage for the same amount.
You choose a term, often 10, 20 or 30 years, and an amount. If you pass away during the term while the policy is in force, your beneficiaries receive the death benefit. If you outlive the term, coverage ends unless you convert or renew it. Many people use term life to cover the years when others depend on their income.
Term coverage built around a debt, most often your home loan, so your family may be able to pay it off and stay in the home.
Mortgage protection is usually a term policy matched to the size and length of your mortgage. Some versions use decreasing term, where the death benefit goes down over time as the loan balance does while the premium stays level. Others use level term, so the full amount stays in place for the term. The benefit is paid to your beneficiaries, who decide how to use it.
A term policy that may refund the base premiums you paid if you outlive the term.
Return of premium term costs more than regular term, but if you outlive the term and the policy stayed in force the whole time, the carrier returns the base premiums you paid, as written in the policy. Rules differ by carrier, including what happens if you cancel early, so we go over the details before you choose it. Ask your tax professional about how a refund is treated.
Permanent life insurance meant to last your entire lifetime, with level premiums and cash value that builds over time.
Whole life pays a death benefit whenever you pass away, as long as the policy is in force. Part of each premium builds cash value according to the policy contract. You may be able to borrow against that cash value, though loans reduce the death benefit if they are not repaid. Some carriers offer participating policies that may pay dividends, which are not promised.
Permanent coverage with no medical exam and no health questions at all. Benefits in the first two years are usually limited.
Because the carrier does not review your health, these policies usually have a graded death benefit: if death from natural causes happens in the first two years, the payout is often limited to the premiums paid plus interest. After that waiting period the full benefit applies. They are commonly offered for ages around 45 to 85, depending on the carrier, and the amounts are usually smaller.
Permanent coverage with flexible premiums, either focused on lifelong coverage at a lower cost (GUL) or on flexibility and cash value (UL).
Permanent insurance designed to work like lifetime term: a level premium and a death benefit that lasts to a chosen age.
A guaranteed universal life policy focuses on the death benefit, not savings. You pick how long the guarantee lasts, such as to age 90, 95, 100 or 121, and as long as premiums are paid on time, the coverage stays in place to that age. Cash value is minimal, which is part of why it often costs less than whole life for the same amount.
Flexible permanent coverage with adjustable premiums and a cash value that earns a declared interest rate.
Universal life lets you adjust how much you pay and, within limits, the death benefit. The cash value earns interest at a rate the carrier declares, not a market return, and that rate can change. If the cash value is not enough to cover the policy costs, more premium may be needed to keep it in force, so we review these policies with you over time.
Permanent coverage with cash value, where the interest credited to that cash value is linked to a market index, within limits set by the carrier.
Indexed universal life is a type of universal life insurance. Part of each premium goes into a cash value account. Instead of a fixed declared rate, the interest credited to that account is linked to the performance of a market index, such as a stock market index, but your money is not invested in the market itself.
The carrier sets the rules: a cap limits how much interest can be credited in a period, a floor, often 0 percent, sets the lowest index credit, and a participation rate may apply. Policy charges, cost of insurance and other fees are taken from the cash value, so the cash value can still go down, especially in years with low credits. Results depend on the policy, how it is funded and how the index performs. Illustrations are examples, not promises, and caps and rates can change.
IUL has more moving parts than term or whole life. We walk through the cap, floor, fees and funding with you, and we suggest talking with a tax or financial professional about how it fits your wider plan.
One policy that covers two people and pays after the second person passes away.
Survivorship policies are usually permanent and are often used by married couples who want to leave money to children or a trust, or to help with estate costs. Because the benefit is paid only after both people pass, one policy is often less expensive than two separate policies for the same amount. Talk with your attorney or tax professional about how it fits your estate plan.
Not traditional life insurance. It pays only for a covered accidental death or certain severe injuries.
Accidental death and dismemberment coverage pays when a death or a listed injury results from a covered accident. It does not pay for death from illness or natural causes. It can be bought on its own or added as a rider to a life policy, where it can add to the death benefit if death is accidental.
Small permanent coverage for a child or grandchild, with level premiums and cash value for their future.
A whole life policy owned by a parent or grandparent on a child. Premiums are usually low and stay level, the policy builds cash value, and many policies include options to buy more coverage later without new health questions, as written in the policy. A child term rider on a parent’s policy is another way to cover children.
Every branch grows from how the carrier reviews your health. These are the two main ways.
A policy that asks health questions instead of requiring a medical exam. It is used for term, whole life and final expense coverage.
You answer a set of health questions, and the carrier may also check records such as prescription history. There is no nurse visit or lab work. Decisions are often faster than full underwriting, though coverage amounts can be lower and premiums can be higher than a fully underwritten policy for the same person.
Traditional life insurance with a medical exam, lab work and a full underwriting review.
The carrier looks closely at your health, history and lifestyle before making an offer. It takes longer than simplified issue, but for healthy applicants it can lead to lower premiums, larger coverage amounts and more rider choices. We help you schedule the exam and keep you updated along the way.
A general overview. Details differ by carrier and policy, and we go over the exact terms before you apply.
a common pick for young families
| Type | How long it lasts | Cash value | Health review | Often used for |
|---|---|---|---|---|
| Final expense | Lifetime | Small | Usually health questions, no exam | Funeral and end-of-life costs |
| Term life | 10 to 30 years | None | Questions, records, sometimes an exam | Income replacement, debts, raising kids |
| Mortgage protection | Length of the loan | None (ROP versions may refund premiums) | Questions, sometimes an exam | Paying off the home |
| Whole life | Lifetime | Yes, builds over time | Questions or full underwriting | Lifelong coverage, legacy |
| Guaranteed issue | Lifetime | Small | None | Coverage when other options are not available |
| Indexed universal life | Lifetime, if funded | Yes, credits linked to an index with a cap and floor | Questions or full underwriting | Permanent coverage with cash value potential |
| Guaranteed universal life | To a chosen age, such as 90 to 121 | Minimal | Questions or full underwriting | Permanent coverage at a lower cost than whole life |
no health questions
Four quick taps. We show which types of coverage often fit your situation, and why. A real quote then confirms what is available to you.
Educational result, not advice and not a quote. Approval, price and options depend on the carrier, your state and your health.
It depends on your goals. Term life is often used to replace income or cover a mortgage for a set number of years. Whole life and universal life are permanent and are often used for lifelong protection or to leave something behind. Final expense coverage is a smaller whole life policy for funeral and end-of-life costs. We go over your family, budget and plans, then show you the options that may fit.
It is a permanent policy with no medical exam and no health questions. Because the carrier does not review your health, the death benefit in the first two years is usually limited, often to a return of premiums paid plus interest, with the full benefit after that waiting period. It is often considered when other coverage is not available.
Indexed universal life (IUL) is permanent coverage with cash value. Interest credited to the cash value is linked to a market index, but you are not invested in the market. The carrier sets a cap on how much can be credited and a floor, often 0 percent, for the index credit. Policy charges and fees are taken from the cash value, so results depend on the policy, how it is funded and how the index performs. Illustrations are examples, not promises.
Depending on the policy, you may be able to convert it to permanent coverage, renew it at a higher premium, or apply for a new policy. Many term policies include a conversion option for a limited time. We help you review your choices before the term ends.
Cash value is a savings-like part of some permanent policies, such as whole life and universal life. It builds over time according to the policy terms. You may be able to borrow against it, but loans and withdrawals can reduce the death benefit. Term life does not build cash value.
With many term, whole life and guaranteed universal life policies, the premium is set when the policy is issued and stays level for the term or for life, as written in the policy. Some types, like annual renewable term or current assumption universal life, can change over time. We point this out clearly before you apply.
Carriers look at health conditions differently, so it helps to check more than one. Some types, like simplified issue and guaranteed issue whole life, are designed for people with health conditions. We cannot promise approval, but we will look for the options that may fit you.
Whenever you are ready, I am here. A call, a text or a short form, in whichever language you prefer. No cost and no obligation.
With care,
Hayden Matthews
Hayden Matthews · Lezama Legacy Assurance · NPN pending