What type of life insurance policy typically offers the highest premiums?

Whole life insurance typically offers the highest premiums among the various types of life insurance policies. This is primarily because whole life insurance provides lifelong coverage, meaning the policy is designed to remain in effect for the insured's entire life as long as premiums are paid. Additionally, whole life policies accumulate cash value over time, which contributes to the higher premium costs. The premiums are set at a higher level compared to term life insurance, which provides coverage for a specified period only and does not have a cash value component.

Moreover, whole life insurance guarantees a death benefit as well as a guaranteed growth of cash value, making it a more complex product that requires more resources from the insurance company to manage. This contrasts with options like term life insurance, which has significantly lower premiums since it only covers a specific term and does not build cash value. Other types, such as universal and variable life insurance, offer more flexibility and investment options but generally do not reach the premium levels associated with whole life policies, given those policies' comprehensive benefits.