The plan of insurance refers to the specific type and structure of life insurance coverage selected by the policyholder. It defines whether the policy is term life, whole life, universal life, variable universal life, or another structure. The plan includes key attributes such as premium payment structure, coverage duration, cash value accumulation, and policy guarantees. Carriers often offer a range of plans with varying flexibility, risk profiles, and benefits. Choosing the right plan of insurance is critical in aligning a client's financial goals with their insurance strategy.

When completing an application, the advisor and client must select a plan of insurance appropriate to the client's goals. For example, a term plan may be ideal for temporary needs like income replacement, while a whole life or indexed UL plan may better serve estate planning or cash accumulation objectives. Advisors help clients evaluate premium affordability, coverage longevity, and optional riders. Underwriters use the selected plan type to determine underwriting guidelines, pricing models, and risk tolerance. The plan choice impacts both the underwriting decision and long-term client satisfaction.