Which type of insurance policy is typically the most affordable when first purchased?

Term life insurance is typically the most affordable option when first purchased because it provides coverage for a specified period, such as 10, 20, or 30 years, and does not accumulate cash value over time. This straightforward structure means that the premiums are lower compared to permanent life insurance policies. Whole life, universal life, and variable life insurance are designed to provide lifelong coverage and often include cash value components, which contribute to higher premiums.

Additionally, since term life insurance covers only a specific timeframe, the risk to the insurer is lower than with policies that are designed to last for the insured's entire lifetime, further contributing to the affordability of term life policies at the outset. These factors combined make term life insurance the most cost-effective choice for individuals looking for budget-friendly options when initially purchasing life insurance.