Life Insurance

About Life Insurance

America's first life insurer, the Presbyterian Ministers Fund, launched in 1759 to provide widow benefits, but the modern industry took off after the 1840s when The Mutual Life Insurance Company of New York popularized level-premium whole life policies.¹

Federal tax policy locked life insurance into estate planning when Congress passed the Revenue Act of 1918, which exempted death benefits from income tax, a rule reaffirmed by the Internal Revenue Code in 1954 and still in force today.²

Product innovation accelerated in the 1980s with universal life and again in the 1990s with indexed and variable policies; LIMRA notes indexed universal life now accounts for roughly a quarter of individual life premiums, reflecting demand for flexible cash value strategies.³

Coverage Highlights

Life insurance blends term and permanent contracts so you can replace income, fund buy-sell agreements, or create a legacy.

• Level & Laddered Term: Provides affordable face amounts for 10-30 years, ideal for mortgages, childcare, and tuition timelines.¹
• Whole, Universal & Indexed Universal Life:  Build cash value, create estate liquidity, or secure supplemental retirement income with flexible premiums and loan provisions.²
• Living Benefits & Accelerated Death Riders:  Allow early access to the death benefit for chronic, critical, or terminal illness to fund treatment or in-home care.³
• Waiver of Premium & Disability Riders: Keep coverage in force if the insured becomes disabled, preventing involuntary lapse.⁴
• Guaranteed Insurability & Conversion Options:  Let you increase coverage or exchange term for permanent insurance without new underwriting, protecting insurability after health changes.⁵
• Supplemental Family Riders: Extend smaller death benefits to spouses or children under one policy, simplifying underwriting.⁶

Rising Costs

Swiss Re reports that U.S. life reinsurance premiums grew 6% in 2024 as carriers responded to higher mortality volatility and capital requirements, raising costs for permanent products.¹

Moody's projects individual life premiums will continue climbing in 2025 because carrier investment income remains below pre-2020 levels, forcing higher prices to maintain profit margins.²

LIMRA's 2025 Insurance Barometer Study shows 44% of non-owners cite cost as the main barrier to purchasing life insurance, up from 38% in 2022, even though most overestimate actual premiums by 3x or more.³

Cheaper Premiums

• Apply early & stay healthy: NAIC data confirms younger, healthier applicants qualify for preferred risk classes that can cut term premiums by 30%-50%.¹
• Layer term policies (laddering): NerdWallet shows combining multiple shorter terms to match shrinking obligations reduces total premium spend compared to one large policy.²
• Annual or lump-sum funding: Paying annual premiums (instead of monthly) often saves 3%-5% in modal charges; single-pay or 10-pay designs can also reduce long-term costs when structured properly.³
• Leverage 1035 exchanges: IRS Section 1035 allows you to exchange underperforming policies for new contracts without triggering tax, unlocking better crediting rates or modern riders.⁴
• Bundle household needs: Insurers sometimes offer unit-cost savings when spouses or business partners apply together, and underwriting two policies simultaneously reduces administrative fees.⁵

What We Do

We help you navigate the life insurance landscape by assessing your unique needs, educating you on product options, and selecting coverage to fit your family or business goals. Our expertise ensures you get the best value and protection for your investment.