Term life insurance is generally considered to be the most affordable type of life insurance. It provides coverage for a specific period of time, such as 10, 20, or 30 years, and pays out a death benefit if the insured passes away during the term of the policy. Because it offers pure death benefit protection without any cash value or investment component, term life insurance tends to have lower premiums compared to other types of life insurance, such as whole life or universal life insurance.
Whole life insurance and universal life insurance are typically more expensive than term life insurance because they offer coverage for the entire lifetime of the insured and also include a cash value component that grows over time. This cash value can be accessed during the policyholder's lifetime, which contributes to the higher premiums associated with these types of policies.
It's important to note that the cost of life insurance can vary based on factors such as the insured's age, health, coverage amount, and the insurance company's underwriting guidelines. Therefore, while term life insurance is generally the most affordable option, individual circumstances and preferences should be considered when choosing the right type of life insurance policy.