Term life

Offers larger coverage amounts for a specified term. This is often used for mortgage protection, income replacement, or protecting large assets. These policies typically do not build value, but many increase in cost or decrease in coverage as the insured gets older.

Example - “Robert & his wife recently purchased a home, and want to make sure if something were to happen to either of them while they still had mortgage payments, it would not create a financial burden. They took out a decreasing term policy for the amount of the mortgage.”

whole life

Designed to offer permanent coverage amounts, guaranteed to pay out upon the passing of the insured. This is often used to cover any final expenses, (funeral arrangements etc.) or used as a love gift for the beneficiary. These policies typically build values over time, and have level premiums.
 

Example - “Harold realized he wasn’t getting any younger and wanted to make certain, that if something were to happen to him, his two daughters would not have to come up for the finances for his arrangements. He took out a Whole Life policy for the estimated funeral costs, and to leave a small gift behind for each daughter.”

universal life

Somewhat a combination of Term Life and Whole Life, these policies build value, but often have an expiration date. Mostly used to help supplement your retirement benefits, they typically build more value while you are younger and some can even be attached to interest accounts to increase value.

Example- “Cindy just started a new job, and lost all of her benefits from her previous employer. She wanted to make sure that she has something that will allow her to save for retirement but also provide a benefit if she were to pass prematurely, without being tied to her employer. She took out a Universal Life policy for the amount of a years salary.”