Educational Guide
Life insurance basics: match the policy to the purpose
Understand the general purposes of term life, permanent life, and final expense insurance.
Published and reviewed by Summit Shores Advisors LLC · Updated September 2, 2026
Term life insurance
Term coverage generally provides a death benefit for a defined period and is often considered for temporary needs such as income replacement or a mortgage.
Permanent life insurance
Permanent policies are designed for longer-term coverage and may build cash value, depending on the contract. Premiums and guarantees vary by policy.
Final expense insurance
Final expense coverage is typically designed to help with funeral and other end-of-life expenses. Coverage amounts and underwriting differ by carrier.
Questions to ask
Consider who depends on your income, how long the need may last, existing savings, debts, affordability, policy exclusions, and the carrier’s financial strength.
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