Which type of life insurance provides the greatest amount of coverage for the lowest premium?

Term life insurance is designed specifically to provide a high coverage amount for a relatively low premium compared to other types of life insurance. This is primarily because term insurance covers the insured for a specific period, or "term," such as 10, 20, or 30 years, and does not accumulate cash value like whole or universal life insurance. Therefore, the costs associated with providing coverage are lower, which allows for a greater death benefit relative to the premium paid.

In contrast, whole life and universal life insurance policies include a savings or investment component that increases the cost of the premium. Variable life insurance also tends to have higher premiums due to its investment options and flexibility, which involve more risk and complexity. Consequently, while these policies may offer additional benefits, they do not provide the same cost-effective coverage as term life insurance, making term the most economical choice for those seeking significant coverage without a high monthly cost.