Which type of insurance is typically shorter in duration and less expensive?

Term life insurance is typically shorter in duration and less expensive compared to the other types of life insurance mentioned. This is because term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, and pays a death benefit only if the insured passes away during that term. Since it does not accumulate cash value and is designed purely for death benefit protection, its premiums tend to be lower and more affordable.

Other types of life insurance, such as whole life, universal life, and variable life, usually involve higher costs due to their cash value components and lifelong coverage. Whole life insurance, for instance, covers the insured for their entire life and builds cash value over time, which adds to the premium costs. Similarly, universal and variable life insurance offer flexible premiums and changing death benefits, along with investment options, resulting in higher overall expenses.

Understanding the differences in coverage duration and cost structure is crucial when evaluating life insurance options, reinforcing the idea that term life insurance is better suited for those seeking a temporary, budget-friendly solution.