Which policy generally has the lowest initial premium?

A term policy generally has the lowest initial premium compared to other types of life insurance policies. This is because term insurance provides coverage for a specified period, or "term," and does not build cash value. The premiums are primarily focused on the cost of mortality risk during the term and do not include savings or investment components, which can significantly increase the cost of other types of life insurance.

In contrast, a whole life policy, for example, includes a savings component that accumulates cash value over time, resulting in higher initial premiums. Similarly, a participating whole life policy typically offers dividends and is also designed to provide lifelong coverage with a cash value component, further raising the initial premium. A T-100 policy, which offers lifetime coverage but incorporates a cash value component, is also more expensive than a term policy.

In essence, the structure and purposes of these policies contribute to the varying levels of initial premiums, making term policies the most affordable option for individuals seeking coverage without the additional financial commitments associated with other types of insurance.