What is Life Insurance

June 27, 2025

A straightforward guide to understanding the types of life insurance, how they work, and how to choose the right coverage for your needs.


Life insurance is one of the most important tools available for financial planning, yet it’s often misunderstood. While it can feel complex, at its core, life insurance is simply a way to provide security and peace of mind for your loved ones. When you pass away, a life insurance policy can help your family manage final expenses, ongoing bills, or long-term goals without being financially overwhelmed.


In this post, we’ll explain the different types of life insurance, how they work, and how to determine which one fits your needs.

Life Insurance

Understanding the Basics of Life Insurance


How It Works

Life insurance is a legal agreement between an individual and an insurance company. The policyholder agrees to pay regular premiums, and in exchange, the company commits to paying a death benefit to the person or people the policyholder chooses. This payment is made after the insured person passes away, providing a financial safety net during a time of loss.


Why It Matters

This coverage ensures that loved ones can handle expenses like funerals, remaining debts, mortgage payments, or day-to-day costs. Depending on the type of policy chosen, it may also offer lifelong protection or savings opportunities.


Term Life Insurance


What It Is

Term life insurance provides coverage for a fixed period of time, commonly ten, twenty, or thirty years. If the insured person passes away during that period, the full death benefit is paid to the beneficiary. If the policy expires before that happens, no benefit is paid unless the policy is renewed or converted.


Who It's For

This type of coverage is well-suited for individuals who need protection during specific life phases. Parents raising young children, homeowners paying off a mortgage, or people with large financial obligations often turn to term life insurance for its simplicity and affordability.


Key Considerations

The premiums for term life are typically lower than for permanent policies, especially if purchased while you're younger and in good health. However, once the term ends, the policy offers no further protection unless renewed, usually at a higher cost due to age.


Whole Life Insurance


What It Is

Whole life insurance is a form of permanent life insurance that remains in effect for the insured’s entire lifetime, as long as premiums continue to be paid. In addition to the death benefit, whole life policies also build a cash value over time, which can be accessed or borrowed against.


Who It's For

This option appeals to individuals seeking long-term protection and financial stability. It is often chosen by people who want to lock in fixed premiums and ensure they leave something behind for family, pay estate taxes, or support a charitable cause.

Key Considerations


Although whole life premiums are higher than term life premiums, they do not increase with age. The policy builds cash value slowly, and that value can be used in later years if needed, although borrowing from it will reduce the eventual death benefit.


Universal Life Insurance


What It Is

Universal life insurance is another type of permanent coverage that allows more flexibility than whole life. Policyholders can adjust the amount of their premiums and death benefit throughout the life of the policy. It also accumulates cash value that earns interest over time.


Who It's For

This option is attractive to individuals who expect their financial situation to change or who want more control over their coverage. Entrepreneurs, people planning early retirement, or those with fluctuating incomes often consider universal life for its adaptability.


Key Considerations

While it provides the benefits of lifelong protection and cash value growth, universal life insurance requires more active management. If the cash value falls too low and premiums aren’t adjusted, the policy could lapse.


Final Expense Insurance


What It Is

Final expense insurance, sometimes called burial or funeral insurance, is designed specifically to cover end-of-life costs. It is a simplified form of whole life insurance with a smaller death benefit, typically ranging from a few thousand to fifty thousand dollars.


Who It's For

This policy type is commonly chosen by older adults who want to spare their families the cost of a funeral, medical bills, or small debts. It’s an excellent choice for those who don’t have large financial needs but still want to provide practical support.


Key Considerations

These policies are generally easier to qualify for, often requiring no medical exam. Premiums remain level for life, and the benefit is guaranteed as long as the policy is kept in force. However, the smaller coverage amount may not be enough for individuals with broader financial goals.


How to Choose the Right Policy


Evaluate Your Current Situation

Start by considering your age, health, income, and overall responsibilities. A younger parent with dependents may need a different policy than a retiree looking to cover funeral expenses. Think about who depends on you financially and how long they might need support.


Estimate Your Coverage Needs

Add up potential expenses your loved ones may face, including funeral costs, mortgage balances, daily living expenses, educational support, or any remaining debts. This total can help you determine the appropriate amount of coverage.


Understand Policy Features

Term life is generally best for short-term, high-impact needs. Whole life offers long-term security and steady growth. Universal life allows for flexibility and change. Final expense insurance provides a simple way to manage final costs. Understanding the features and limitations of each can help guide your decision.


Applying for Life Insurance


Once you’ve chosen a type and determined the amount of coverage you need, the next step is applying. This often involves filling out a basic questionnaire about your health and lifestyle. Some policies may require a brief medical exam, but others do not. After approval, you’ll begin paying premiums, and your coverage will begin.


Naming a beneficiary is an important part of this process. This could be a spouse, child, close family member, or even an organization. Your beneficiary will be the person who receives the payout when the policy is used.


Frequently Asked Questions


Many people wonder whether they need life insurance if they’re single or if their children are already grown. The truth is that even if you don't have dependents, life insurance can help with final expenses, settle debts, or provide a financial gift. Others ask whether policies can be changed later. Some can, especially universal life policies, while others are more fixed in structure. Some individuals also carry more than one policy to serve different purposes. For example, a person might have a term policy for income replacement and a small whole life policy for burial expenses.


Final Thoughts


Life insurance is not just about planning for the unknown, it’s about taking steps today to care for the people you love tomorrow. It provides stability during uncertain times and helps ensure your family won’t face financial stress while grieving your loss. Whether you're just getting started or reviewing your options later in life, understanding the difference between term, whole, universal, and final expense insurance can help you make informed choices that align with your values and goals.

If you’re unsure where to begin, speaking with a licensed professional or trusted advisor can help clarify your needs and guide you toward a policy that fits both your budget and your peace of mind.

Blood Cancer Awareness Month

September 10, 2025
September is recognized as Blood Cancer Awareness Month, a time when individuals, families, organizations, and communities come together to shine a light on a disease that affects so many lives. At Crawford Benefits, this cause is especially close to our hearts. We know firsthand how important awareness and education can be, and this September we are showing our support by turning things a little orange, the color that symbolizes blood cancer awareness. Wearing or displaying orange may seem small, but it is a powerful reminder of the ongoing fight against leukemia, lymphoma, myeloma, and other blood cancers. By dedicating a month to this cause, we hope to encourage early detection, raise critical support for patients and their families, and inspire action within our community. Blood cancers are unique because they affect the very lifeline of the body, the blood, bone marrow, and lymphatic system. Unlike many other cancers that form solid tumors, blood cancers circulate through the body, making them harder to detect in their early stages. That is why awareness is so vital. When people understand what symptoms to watch for and when to speak up, lives can be saved. Some of the most common signs of blood cancers include persistent fatigue or weakness, frequent infections, unexplained weight loss, easy bruising or bleeding, and swollen lymph nodes. Unfortunately, these symptoms can often be mistaken for other, less serious conditions, which can delay diagnosis. The more we talk about these warning signs, the better chance people have at recognizing when something might be wrong and getting help as early as possible. For many families, a blood cancer diagnosis can be overwhelming. It often brings uncertainty, countless medical appointments, and emotional and financial strain. Yet, in the midst of this challenge, stories of resilience, community support, and groundbreaking medical advances provide hope. Treatments such as bone marrow transplants, chemotherapy, immunotherapy, and CAR T-cell therapy are improving outcomes for patients every day. Continued progress in research is possible because of awareness months like this one, which raise funding and spark conversations that keep blood cancer in the spotlight. At Crawford Benefits, our commitment goes beyond simply acknowledging Blood Cancer Awareness Month. We want to encourage real action. One of the simplest yet most impactful ways to get involved is to donate blood. Cancer patients often rely on blood transfusions as part of their treatment, and every donation truly makes a difference. Another powerful step is to register as a bone marrow donor. Many patients with blood cancer depend on bone marrow or stem cell transplants to survive, but finding a matching donor can be difficult. By joining the registry, you could one day give someone the gift of life. Supporting research organizations and patient advocacy groups is also a meaningful way to contribute. Donations help fund groundbreaking studies, provide patient services, and support families during some of the most difficult times in their lives. Even if financial giving is not possible, simply sharing information with friends and family helps spread awareness. Wearing orange, posting about Blood Cancer Awareness Month on social media, or participating in a local fundraising event are small actions that create a ripple effect of education and support. As we reflect on this month, it is important to remember that awareness is not just about statistics or facts, it is about people. It is about honoring those who have lost their lives, supporting those currently in the fight, and standing with caregivers who give so much of themselves. It is also about building hope for the future, where better treatments and maybe even cures become a reality. Awareness months like this remind us that we are not powerless in the face of cancer. Each of us has something to contribute, whether it is time, resources, or simply compassion. We encourage everyone to take a moment this September to learn more about blood cancers and what you can do to help. Check in on loved ones, talk about the signs and symptoms, and look for ways to get involved. Together, as a community, we can raise our voices for a cause that matters deeply to so many. When we unite under the color orange, we send a message of strength, resilience, and unwavering support to those impacted by blood cancer. This September, let us remember that awareness leads to action, and action leads to hope. By donating blood, registering as a bone marrow donor, supporting organizations, and sharing information, we all have the power to make a difference. We stand with the blood cancer community this month and every month, and we invite you to join us in spreading awareness and fostering change. Together, we can turn compassion into action and bring hope to those who need it most.

Easy Ways to Lower Your Carbon Footprint

September 10, 2025
At Crawford Benefits, we believe that small, thoughtful choices can make a big difference for the environment. Every decision we make in our daily lives and in our office has an impact, and by choosing healthier, more sustainable practices, we can help protect our planet for generations to come. With World Environmental Health Day taking place on September 25, it is the perfect time to reflect on how our choices affect the environment and what simple steps we can take to reduce our carbon footprint. Lowering your carbon footprint may sound like a big task, but it really comes down to making small, consistent changes that add up over time. Many of the things we do in our office are simple, affordable, and easy to replicate at home or in other workplaces. One of the first things we decided to change was our use of paper products. Instead of stocking paper towels, we use cloth towels that can be washed and reused. This not only reduces waste but also saves money in the long run. Switching to reusable cloths eliminates the constant need to buy paper products that are used once and thrown away. Cleaning is another area where we have made improvements. Many traditional cleaners contain harsh chemicals that are not only bad for the environment but can also affect our health. In our office, we choose simple, non-toxic cleaning products that are just as effective without the harmful side effects. By choosing safer cleaners, we reduce the amount of toxins released into the air and water supply. To further improve the air quality in our space, we use an ozone machine regularly, which helps clean and neutralize airborne contaminants and eliminate odors. We also use air purifiers in our office. Clean air creates a healthier environment for everyone in the office and contributes to a more sustainable workplace overall. Food storage and packaging are other areas where small changes can have a big impact. Instead of relying on single-use containers, plastic wrap, or disposable baggies, we use Tupperware and reusable storage bags. This change may seem small, but when you think about how often people pack lunches, store leftovers, or organize snacks, the amount of plastic waste adds up quickly. By reusing containers, we cut down on the need for disposable plastics, which are some of the biggest contributors to pollution in oceans and landfills. Reusable products are also sturdier and more reliable, making them a smarter choice for daily life. The great thing about all of these adjustments is how practical and attainable they are. You do not need to make drastic changes overnight to make a difference. Simply replacing paper towels with cloth, choosing a reusable baggie over a plastic one, or swapping one toxic cleaner for a non-toxic alternative are easy ways to get started. These little steps add up, and when more people make them, the collective impact is enormous. September 25 is World Environmental Health Day, which serves as a reminder of how closely connected human health and environmental health are. The quality of the air we breathe, the water we drink, and the products we use every day all play a role in our overall well-being. By choosing to live more sustainably, we are not only protecting the planet but also taking care of our own health. Cleaner air, fewer toxins, and less waste all contribute to healthier communities. It is also important to remember that sustainability is not about perfection. No one can eliminate their carbon footprint entirely, but everyone can take steps to reduce it. Whether it is biking instead of driving for short trips, turning off lights when you leave a room, reducing food waste, or bringing reusable bags to the grocery store, every action makes a difference. The key is to be mindful of your choices and to look for areas where you can swap out a disposable habit for a reusable one. At Crawford Benefits, we take pride in the steps we have already put in place in our office, but we also know there is always room to improve. Environmental health is an ongoing commitment, and World Environmental Health Day gives us the opportunity to reflect on what we are doing and what more we can achieve. We encourage everyone to look at their daily routines and see where they can make simple, sustainable swaps. In the end, the goal is not just to reduce our carbon footprint but to create a healthier, more resilient future for everyone. By making small, consistent choices, we protect the environment, safeguard our health, and set an example for others to follow. This September, as World Environmental Health Day approaches, we invite you to join us in making changes that matter. Whether at home, at work, or in your community, each choice adds up to a cleaner, healthier planet. Together, we can turn small actions into lasting change.