Term or Permanent Life Insurance in Florida? How to Choose and What Sets the Price
Updated October 24, 2026 · By the Arte Insurance team · 7-minute read
In Florida, the main life insurance decision is between a term policy (covers you for 10, 20 or 30 years, with the lowest premium per dollar of coverage) and a permanent one (whole life or universal life, built to last your whole life, with cash value and a higher premium). For most families with children, a mortgage or debts, term covers the years when your income would be missed most; permanent makes sense when you want coverage that never expires, money set aside for final expenses, or a long-term component on top of other savings. The price depends mostly on your age, your health, whether you use tobacco, the amount and the length of coverage.
Updated: October 24, 2026 · Source: Florida Statutes, s. 626.99 and s. 627.455
Many families in Hialeah, Miami and across Florida ask us about life insurance after a health scare, a new baby or a mortgage. This guide explains the options in plain words so you can walk into the conversation with an agent knowing what you want.
What it’s for, concretely
- Replacing your income during the years your family depends on it.
- Paying the mortgage or rent so nobody has to move.
- Covering debts (car, credit cards, loans) that would otherwise fall on your family.
- Leaving money for your children’s education.
- Paying final expenses: funeral, transport and medical bills, which in Florida often add up to several thousand dollars.
Term life: the most coverage for the lowest premium
A term policy covers you for a fixed period, usually 10, 20 or 30 years, with a premium that stays level for that period. If you die during the term, your beneficiary receives the full amount, which in the vast majority of cases is not subject to income tax. If the term ends and you’re still alive, the policy expires (or can be renewed at a much higher price). It builds no cash value, which is why it’s the most affordable option.
It fits when you have an obligation with an end date: young children (a 20-year term covers them until they’re independent), a 30-year mortgage, a business loan. Many term policies let you convert to permanent coverage later without a new medical exam; ask until what age.
Permanent life: for your whole life, with cash value
Whole life keeps the same premium for life, guarantees the benefit and builds cash value in a predictable way. Universal life gives more flexibility in premiums and benefit; in the indexed version, the cash value grows with a market index, with caps and floors set by the insurer. In all of them, part of the premium pays for the insurance and part is saved; you can borrow against that value, though an unpaid loan reduces the benefit.
It fits when you want coverage that doesn’t expire: final expenses, leaving an inheritance, giving each child the same amount, protecting a child with a disability, or planning with an accountant when the estate is large. Also for people who have used other savings vehicles and want an additional long-term component, understanding that cash value grows slowly in the early years.
Final expense: the small policy most people buy after 50
It’s a smaller permanent policy (usually $5,000 to $25,000) meant for the funeral and the bills of the last months. The application is usually simpler, often with no medical exam and just health questions. It’s the typical choice for parents and grandparents who don’t want to leave that expense to their children.
How much coverage do you need?
A practical starting point, the DIME method:
- Debt: everything you owe, including credit cards and the car.
- Income: the years of income your family would need to replace (many people use 10 to 15 years).
- Mortgage (or rent): what’s left to pay, or several years of rent.
- Education: what you want to leave for your children’s studies.
Add those four numbers, subtract your savings and any coverage you already have (for example, through work, which you normally lose when you change jobs), and that’s your approximate amount. For a family with two children, a mortgage and a $50,000 income, the result is often between $500,000 and $750,000, an amount that on a term policy is far more affordable than most people expect.
What sets the price
- Age: the main factor. Every year you wait, the premium goes up; buying at 30 costs considerably less than at 45 for the same coverage.
- Health: blood pressure, cholesterol, weight, diabetes, family history. Many policies require a simple medical exam at your home; others use only questions and records.
- Tobacco: smoking or vaping can double the premium. If you quit more than 12 months ago, ask: some insurers treat you as a non-smoker after a certain time.
- Amount and length: more coverage and a longer term cost more, but not proportionally: going from 20 to 30 years often costs less than people expect.
- Job and hobbies: risky occupations, scuba diving, motorcycling or private aviation can raise the price.
- Policy type: for the same amount, permanent costs several times more than term because it includes the savings component and lasts for life.
You don’t pay more with an agent: the insurer pays the agent and the premium is set by the company, the same as buying direct.
What to know before you sign in Florida
- Review period (right to return the policy): life policies in Florida usually include at least 14 days from the day you receive the policy to return it and get your money back if you change your mind (Florida law requires it when the buyer’s guide isn’t delivered before the first premium is collected). Confirm the exact period in your policy.
- Contestability: during the first 2 years, the insurer can review the application if there’s a claim; after 2 years the policy is incontestable, except for non-payment. That’s why it pays to answer everything accurately, including tobacco and diagnoses.
- Beneficiaries: name a person (or several, with percentages) and a contingent beneficiary. Review the list after a divorce, a marriage or a birth.
- If you’re not a citizen: that alone doesn’t stop you from buying; requirements vary by insurer (some accept applicants with an ITIN) and an agent can tell you which options apply to you.
- Work coverage is usually one or two times your salary and is lost when you change jobs; it’s a supplement, not a plan.
Frequently asked questions
Can I have more than one policy?
Yes. It’s common to combine a large term policy while the children grow up with a small permanent policy for final expenses.
What if I stop paying?
On term, the policy lapses after the grace period. On permanent, the cash value can pay premiums for a while. Ask before canceling: sometimes it’s better to reduce the amount than to lose the policy.
Is the benefit taxed?
As a general rule, the death benefit is not subject to income tax. An accountant can review your situation if the estate is large.
How long does approval take?
From the same day (no-exam policies) to 4 to 6 weeks if there’s an exam and medical records.
We’ll compare your options with you
We are a private insurance agency licensed in Florida (license L116417), based in Hialeah, helping families across the state by phone and online. We work out how much coverage you need, compare term and permanent policies from several insurers, and explain each option in English or Spanish, with no pressure.
Request a life insurance quote or call (786) 808-1802.
Arte Insurance is a private insurance agency licensed in Florida (license L116417). This article is general information, not financial, legal or tax advice. Premiums, underwriting rules and conversion options vary by insurer and policy; check your contract and talk to a licensed agent about your situation.
Sources: Florida Statutes, s. 626.99 (consumer information and policy return) · Florida Statutes, s. 627.455 (incontestability) · Florida Office of Insurance Regulation · Florida Department of Financial Services, license lookup