Which type of life insurance policy typically has a lower initial premium cost?

Term life insurance typically has a lower initial premium cost compared to other types of life insurance policies. This is primarily because term life insurance is designed to provide coverage for a specific period, or "term," such as 10, 20, or 30 years, and does not build cash value. The insurer's risk is limited to the duration of the term, and because it does not include a savings or investment component, the premiums are generally more affordable.

In contrast, whole life insurance includes a savings element that accumulates cash value over time, leading to higher initial premiums due to this additional benefit. Universal life insurance also presents a more complex structure that combines flexible premiums with a cash value component, while variable life insurance allows policyholders to invest the cash value in various investment options, usually resulting in even higher premiums due to the associated risks and growth potential. Hence, the fundamental nature of term life insurance allows for lower initial premiums, making it an accessible option for individuals looking for straightforward death benefit coverage.