How to choose the best life insurance policy

Choosing the best life insurance policy isn't one-size-fits-all. The right policy depends on your goals, budget, age, dependents, and how long you'll need coverage. You may consider term life for short-term needs, whole or universal life for lifelong coverage, or final expense insurance for end-of-life costs. Your life insurance policy's death benefit can provide financial protection for your loved ones, pay off debts (mortgage, credit cards, and loans), or even fund an inheritance.

4 to readUpdated September 10, 2026

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Key takeaways

The best life insurance policy is the one that fits your needs, budget, and timeline
To choose a policy, you may need to decide if you want term life, whole life, final expense insurance, or another type of life insurance

What type of life insurance policy should I get?

When choosing the best type of life insurance for your needs, know how the types of life insurance differ at a high level:

Term life: Term life insurance provides coverage for a specific time period, like 10, 15, 20, or 30 years — there's even a new one-year short-term life insurance option. You may want to consider term life insurance if you're younger with fewer health conditions or if you have a young family that depends on your income.
Final expense: A final expense insurance policy, also called burial insurance, covers end-of-life costs like funeral arrangements and medical or legal bills. It may be right for you if you're older or simply need coverage for end-of-life costs.
Permanent life: Permanent policies, like whole life insurance or universal life insurance, provide lifelong coverage as long as you pay your premiums. Permanent life insurance may be right for you if you want a policy that lasts your entire life and grows in value over time.

See more on the difference between term and whole life insurance.

Questions to ask yourself when choosing life insurance

Choosing the right life insurance policy depends on your budget and your loved ones' needs and financial situation.

If you passed away, who would need your income and for how many years?
Consider: If the need is temporary, you may want to consider term life insurance. If you have a lifelong dependent, like a child with special needs or an aging parent, whole life insurance or universal life insurance may be more practical.
Do you have sufficient retirement funds that could assist them for years to come?
Consider: If your personal savings already cover most of your family's long-term needs, you may want to consider less life insurance coverage or simply choose a burial insurance policy.
Do you pay for childcare or your children's education?
Consider: Term life insurance may help provide the right level of protection during the years you're raising a family.
Do your children plan to attend college? For how long? Public or private institutions? When will that start?
Consider: A term life policy may be a practical option for coverage during your child's educational years.
Do you have a mortgage? When do you plan to finish paying it off?
Consider: If your goal is protecting your family during the years you're paying off your mortgage, term life insurance may be worth considering.
What end-of-life expenses do you want to help pay for?
Consider: Funeral insurance (also called burial insurance) or another permanent policy like whole life or universal life may be the right choice for you if you're thinking about coverage for headstones, cremation/burial, final medical bills, and other end-of-life costs.

Answering these questions can help you determine how long your loved ones will need coverage and what kind of policy makes the most sense. To get more precise coverage amounts, try our life insurance calculator, and learn more about how long you should have life insurance.

What is a hybrid approach to life insurance?

A hybrid approach to life insurance means combining more than one type of policy to meet your financial and lifetime goals. This may give you more flexible coverage options that better align with your budget and life stage, rather than relying on one policy to do everything.

Example:You have a spouse, two children under five years old, and a mortgage. You may want to consider a larger term life insurance policy to replace your income until your children grow up and the mortgage is paid off. Combining it with a smaller permanent policy to help with final expenses could make sure you leave enough support for your loved ones to pay off credit cards and funeral costs.