Life Insurance

What is life insurance?
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance. See our Insurance Glossary for a list of common terms. How much life insurance do I need?

• Term Insurance: covers you for a term of one or more years and pays a death benefit only if you die in that term. Term insurance generally offers the largest insurance protection for your premium dollar. It typically does not build up cash value and it may not be renewable at the end of the term or may cost considerably more to continue.
• Permanent Life Insurance: provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. Because of the savings element, premiums tend to be higher. It goes by several names such as universal life, variable universal life and whole life.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified life insurance professional.


What affects premiums?  (Source: Connecticut Insurance Department)

• The age you purchase your policy. The older you are, the more expensive the premiums.
• Your overall health. Life insurance companies typically ask you about your medical history, request access to medical records and even obtain blood and urine samples for testing.
• Pre-existing and/or chronic health problems, such as diabetes, heart disease, cancer or sexually transmitted diseases may prevent you from getting life insurance or place you in a high-risk pool at greater cost.
• Poor health habits, such as smoking and excessive drinking.
• Engaging in dangerous hobbies, such as skydiving, skiing or rock climbing
• Your driving record in terms of accidents, DUI citations, claims and tickets. The better your record, the better rates you’ll receive for your life insurance.
• Your geographic area. Life insurance companies have access to regional data that document mortality rates and life expectancy, and they use that data to calculate the rates they offer.