Illustrative premiums for a healthy non-smoker; term lines step up at each renewal (that's the part nobody shows you). Whole life stays level — and unlike term, it's guaranteed to pay out eventually and builds tax-sheltered cash value along the way. Actual pricing varies by insurer and health.
| Type | Cost | Lasts | Pays out? | Best for |
|---|---|---|---|---|
| Term (10/20/30) | Low now, jumps at renewal | The term; renewable to ~85 | Only if you die in the term (>90% don't) | Mortgage years, income-replacement years |
| Whole life | High but level forever | Life | Guaranteed, whenever death occurs | Final taxes, estate equalization, CDA planning |
| Universal life | Flexible premium + investment side | Life (if funded) | Guaranteed if kept funded | Hands-on owners wanting investment control |
| Joint last-to-die | ~30–40% cheaper than two singles | Both lives | On the second death | Couples funding the tax at death |
Get the structure right before you sign
Who owns the policy, who the beneficiary is, and how it meets your will decides the entire tax outcome. We review it with you — and coordinate with your insurance advisor and lawyer.
Book a Consultation →Match the Tool to the Timeline
Almost every life-insurance mistake is a timeline mistake. A mortgage is a temporary problem — term insurance covers it cheaply and then politely expires. The tax bill on your estate is a guaranteed problem — it will happen, on a date nobody knows. Covering a permanent certainty with a temporary product (or vice versa) is how people end up over-paying or under-protected.
The Majors in Plain English
- Term — rent. Cheap for the window you need, steep renewals after, nothing back when it ends
- Whole life — own. Level premium, guaranteed payout, tax-sheltered cash value that compounds quietly
- Universal life — own, with a throttle. Flexible deposits and an investment account inside; more control, more ways to get it wrong
- Joint last-to-die — a structure, not a product. Insures a couple, pays on the second death — exactly when the deferred tax bill lands
Why Incorporated Owners Play a Different Game
If you own a corporation, premiums can be funded with corporate dollars taxed at ~11% instead of personal dollars taxed at up to 48% — and on death, the benefit (less the policy's adjusted cost basis) credits the Capital Dividend Account, letting your company pay a tax-free capital dividend to your estate. That combination is why the classic estate plan is a corporately-owned, joint last-to-die whole life policy. We walk through the full mechanics in our guide: Corporate-Owned Life Insurance and the Tax at Death.
Where People Get Burned
- Naming a person (not the corporation) as beneficiary — and losing the CDA credit entirely
- Letting the operating company own the policy, exposing it to business creditors
- Buying permanent coverage for a temporary need and surrendering early at a loss
- Renewing term at 60+ out of inertia when the need became permanent years ago
- Wills that don't line up with the policy — breaking the spousal rollover the plan depended on
How Swift Fits In
Insurance advisors quote the policy; we pressure-test the structure — ownership, beneficiary, CDA mechanics, the passive-income rules, and how it all meets your will and shareholders' agreement. Pair this tool with our Dying Without a Will tool to see what's at stake, then talk to our estate planning team.