Life Insurance Policy Types

If a certain expense would burden your family like a mortgage for example this type of life insurance policy could be perfect for you.

Life insurance policy types. Correspondingly the death benefit decreases each year as well. Updated november 25 2020. Other policies allow you to skip the medical exam or pay for specific end of life expenses. It provides death benefit protection for 10 15 20 25 or 30 years depending on the company and what you choose.

Unlike a term life insurance policy you can also build what is known as cash value inside of a whole life policy. Variable life insurance is also a form of permanent life insurance coverage. Under this policy premiums are paid throughout life and the sum insured becomes payable only at the death of the insured. These types of life insurance policies offer a death benefit as well as a cash component.

Term life insurance insurance has a specific end date of coverage. The policy remains in force throughout the life of the assured and he continues to pay the premium till his death. A decreasing term life insurance policy is designed for short term needs. The other primary version of life insurance is what is known as whole life insurance.

There are several types of universal life insurance policies including interest sensitive also known as traditional fixed universal life insurance variable universal life vul guaranteed death benefit and has equity indexed universal life insurance. Designed to cover specific expenses the amount owed decreases each year. Here s a brief overview of the types of life insurance you may encounter when you re shopping around. The two primary types of life insurance term life and permanent life are just the tip of the iceberg.

Choices of coverage lengths are generally 5 10 15 25 or 30 years. However with variable life insurance the policyholder can take part in a variety of different investment options such as equities. Some types of life insurance come with a cash value amount that works like a savings or investment account. Term life insurance is the first of the two major types.

It s the cheapest way to buy life insurance. The two main types of life insurance are term and whole life insurance. Whole life insurance is a type of permanent life insurance and it will last for your entire life. Insurance companies also offer dozens of other insurance policies each designed to pay death benefits in different ways.

Universal life insurance policies have cash values.