Choosing the right coverage
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Life insurance
How it works, why you should consider it, and how to get a quote.
Last updated June 15, 2026
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A life insurance policy is a contract with an insurer. In exchange for premiums you pay, they agree to pay a benefit if you pass away. That tax-free payout may be large enough to pay for several years of family living expenses — replacing income you would have otherwise provided.
Some types of life insurance — whole life and universal life — also build cash value that helps grow family assets with valuable tax advantages. That’s why life insurance is more than just a source of protection — it can also be a tool to help build financial well-being for life.
Get an instant term life insurance quote
Who’s life insurance for?
If you have loved ones who depend on you for support — financial or otherwise — buying life insurance is one of the best ways to help ensure they're provided for. It can also be used for estate planning to help build and pass on family wealth and assets.1
What does life insurance cover?
It’s insurance that provides a death benefit if the insured passes away while the policy is in effect. It’s almost always paid out as an income tax-free lump sum.
Why should I consider life insurance?
Life insurance can do more than provide income replacement for your dependents — it can be used to help build tax-efficient family assets, help ensure the continuity of your business if you pass away, or even pay for final expenses.
I just need temporary coverage
If you only need protection for a limited amount of time — say, until your children are out of college or the mortgage is paid off — term life insurance is typically the most cost-effective choice. It typically provides the largest death benefit amount for the fewest premium dollars.
I want to build financial assets
Permanent, whole, and universal life insurance builds tax-advantaged cash value that you can access in a number of ways, while also providing lifelong coverage. That can be important for estate planning and related needs, like funding a family trust.
I want predictable costs
Whole life insurance offers guaranteed premiums that stay the same for life, even as cash value grows. But universal life gives you more flexibility because you can adjust premiums within a certain range to accommodate fluctuating income.
It’s also important to remember that as your needs change over time and through different life stages, you may require different types or amounts of coverage. When that happens, it’s a good idea to talk with a financial advisor who can help ensure that your evolving coverage needs are met.
When do people get life insurance?
People choose to consider life insurance at different points in their lives: when they get married or start a family; when they change jobs and lose workplace coverage; when they start a business and need a way to help ensure continuity; or when they reach a stage of planning their estate.
While there are all sorts of reasons to consider life insurance, the fact is, there's no time like the present to get this vital source of financial protection for those who depend on you. The younger you are, the more affordable your premiums, and the more life insurance options you'll have.
Getting married
Expecting a baby
Buying a new home
Age
Younger applicants almost always pay lower rates than older applicants.
Health
Healthier applicants get preferred rates and are more likely to be approved for coverage.
Smoking
Tobacco use and vaping are serious health risks that tend to increase policy cost.
Medical history
Personal or family history of health issues that impact longevity can raise rates.
Lifestyle
Risky activities and hobbies, such as skydiving and scuba diving, may raise premiums.
Occupation
Certain high-risk occupations and work environments, such as an offshore oil rig, can add risks that raise rates.
In addition, higher coverage amounts, longer coverage periods (for term life), optional policy riders, and special policy types (such as guaranteed issue that don’t require a medical exam) can all add to premium costs.
Get an instant term life insurance quote
Getting coverage if you have health issues
Many, but not all, people with health problems can get life insurance, but the path is usually different from that taken by those in better health. With most term and permanent policies, all applicants go through an underwriting process regardless of health, during which the insurer reviews health history, prescriptions, medical records, lifestyle, and recent exam results. Underwriting will generally lead to standard approval, approval with higher premiums, approval with exclusions, or denial of coverage.
If coverage is denied, a simplified or guaranteed issue policy may be your best option. Simplified issue asks health questions but skips the medical exam; guaranteed issues skips both. While these types of policies generally have lower benefits and/or higher premiums than standard medically underwritten policies, they can still provide a measure of financial protection.
If you have access to a group life insurance program through work, that may be your best option. These plans often require minimal or no medical underwriting, especially for lower coverage amounts.
But just because you have a condition that’s deemed serious, don’t assume you’re uninsurable. To cite just one example, people with HIV who are otherwise healthy may now be able to qualify for whole life insurance. If you have a serious health issue and still want life insurance protection, consider speaking with a Guardian financial advisor who will work with you to find a solution.
Get an estimate of how much life insurance you need
The amount of life insurance you need generally depends on your stage of life and how many people rely on your income. We’re here to support you during these important life decisions. Our quote tool can give you a quick estimate based on certain assumptions related to your age and income.9 In general, the younger you are and the more people depend on you, the more coverage you may want for income replacement if you unexpectedly pass away.
There are also other ways to estimate your life insurance needs. For a more personalized analysis of how much coverage to get, speak with one of our financial advisors.
Budget-friendly life insurance for individuals, families, and businesses
You want to know your life insurance company will be there when you need it most. For over 160 years, Guardian has helped protect people with life insurance. Why? Because you can rely on strong financial soundness, backed by high ratings from independent agencies — including an A++ Superior rating from A.M. Best Company.10 With 12 million customers, Guardian continues to support individuals and families when it matters most. We also have a five-star rating from NerdWallet.11 And as a mutual insurance company owned by policyholders, we’re able to put your interests first without answering to outside shareholders.
FAQ
Top questions about life insurance
Life insurance can be an important step in protecting your family’s financial future, and we’re here to help you make the decision that’s best for you and your loved ones. Let’s explore a few common questions so you can feel confident about choosing the option that works best for you.
A life insurance policy can help provide financial protection at any age, and it is especially important for adults with financial obligations and dependents. Consider getting life insurance sooner rather than later because, generally speaking, the younger and healthier you are when you purchase life insurance, the lower your rates will be. As you age and your financial picture changes, life insurance can provide additional benefits. For example, permanent life policies are often used for estate planning to help simplify the transfer of generational assets to beneficiaries. There can be certain tax benefits as well, but you should always consult with a tax professional before purchasing life insurance for this purpose.
Yes, many people have life insurance coverage from more than one source. For example, if you have group life insurance coverage through work, the coverage amount may not meet your life insurance needs, so you can supplement it with an individual policy. Or perhaps you have permanent insurance that provides lifetime coverage while building cash value, but it has a limited death benefit for your family. You can choose to get an additional term life insurance policy that can help provide a significant income tax-free death benefit while your children are still growing up, or until a temporary financial burden (like a mortgage) is paid off.
Life insurance death benefits are almost always income tax-free. The cash value growth of a universal or whole life insurance policy is also tax-deferred, so it can grow faster because it's not being reduced by taxes each year.
If you have family members or other loved ones who depend on your income for everyday expenses and ongoing needs, life insurance is one of the best ways to help provide for their financial needs if you die unexpectedly. Life insurance companies also have specialized policies for customers with varying incomes and other needs, such as high-net-worth individuals looking to transfer assets more easily without incurring added estate taxes (you should always consult a professional for tax advice first). On the other hand, if you have no financial dependents or heirs you wish to provide for, life insurance may not be a priority, although you can leave your life insurance benefits to a cause you care about.
The best policy for you depends on your needs and budget. If you're looking for lifelong insurance protection that also provides cash value, there are two main options: whole life and universal life. A whole life policy offers level premiums and more guarantees, but a universal life policy can be more cost-efficient because it offers variable premiums that you can raise or lower within a certain range. The insurance company may also let you customize your policy with various provisions, such as an accelerated death (or “life”) benefit rider to pay for end-of-life needs (and even certain kinds of long-term care). If you don't need permanent coverage or cash value that can provide benefits such as policy loans, term life insurance coverage costs will generally be lower.
Life insurance rates vary greatly depending on the type of policy you get, your age, health, smoking status, and other factors. As an example, according to Forbes, a $100,000 10-year term policy for a healthy 30-year-old woman can cost as little as $7 per month; a 75-year-old male can expect to pay an average of $143 per month, assuming he can find coverage.12 With such a broad range of average life insurance costs, the best way to estimate how much you will actually pay for coverage is by using a life insurance calculator.
Many people can qualify for life insurance even if they have a health condition, but the cost will probably be higher than it would be for healthier individuals. One option is guaranteed issue life insurance, which doesn’t require you to answer health questions or submit to a medical exam. With guaranteed acceptance, you usually cannot be turned down for health reasons, but it typically features a smaller death benefit, higher premiums, and a waiting period before the full payout begins.
Term versus whole life: Advantages and disadvantages
Want to compare? A purchaser’s guide to life insurance
Applying for life insurance? What to expect during the underwriting process
Taking advantage of cash value: A guide to life insurance loans
How does whole life insurance work – and what can it do for you?
How much life insurance do you need? Here are some rules of thumb
Disability insurance
If you’re unable to work due to an injury or a medical condition, where will you get income to live on? Disability insurance can help support your family when it’s needed most.
Annuities
Annuities are a financial tool that can help provide a steady, guaranteed stream of income in retirement.13
Dental insurance
Dental insurance helps keep your mouth and body healthier by covering regular preventive oral care. It helps cover costs every time you visit the dentist — even if you need major work.
This article is for informational purposes only. Guardian may not offer all products discussed. Please consult a financial advisor to understand what life insurance products are available for sale.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
"Financial Advisor”/“Advisor” is used generally to describe insurance/annuity and investment sales and advisory professionals who may hold varied licensing as insurance agents, registered representatives of broker-dealers, and investment advisory representatives (IAR) of registered investment advisors, respectively. Only those representatives who use Advisor in their title or otherwise disclose their status and meet the necessary licensing or registration requirements provide investment advisory services.
1 Katia Pinkett, Lisa Green, Average Life Insurance Rates, NerdWallet, June 2026
2 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
3 All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims-paying ability of the issuing insurance company.
4 Dividends are not guaranteed. They are declared annually by Guardian's Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.
5 Some whole life policies do not have cash values in the first two years of the policy and don't pay a dividend until the policy's third year. Talk to your financial advisor and refer to your individual whole life policy illustration for more information.
6 Universal life insurance may lapse prematurely due to inadequate funding (low or no premium), an increase in the cost of insurance rates as the insured grows older, and a low interest crediting rate. This does not apply to universal life policies with a secondary guarantee, but if the secondary guarantee requirements are not met, the policy will most likely lapse.
7 Permanent life insurance consists of two types: whole life and universal life. Cash value grows in a participating whole life policy through dividends, which are declared annually by the company's board of directors and are not guaranteed. Cash value grows in a universal life policy through credited interest and decreased insurance costs. The cash value of both policy types benefits when the policyholder pays an amount above the required premium.
8 Katia Pinkett, Lisa Green, Average Life Insurance Rates, NerdWallet, June 2026
9 Calculator relies on the Human Life Value estimation method. It's a relatively simple way of looking at your needs based on what you're earning now and what you expect to earn in the future, according to the following chart.
Age | Maximum Life Insurance |
18–40 | 30 times income |
41–50 | 20 times income |
51–60 | 15 times income |
61–65 | 10 times income |
66–70 | 1 time net worth |
71–80 | 1/2 times net worth |
81+ | case-by-case |
10 Financial and investment highlights, Guardian, May 2025
11 Kaz Weida, Guardian Life Insurance Review 2026: Pros & Cons, NerdWallet, Feb 24, 2026
12 Penny Gusner, Amy Danise How Much Does A $100,000 Life Insurance Policy Cost?, Forbes Advisor July 19, 2023
13 Annuity guarantees are backed by the claims-paying ability of the issuing insurance company.
