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Life Insurance Types

Understanding Life Insurance

Approaching the issue of selecting the right life insurance for your lifestyle, income, family, and personal needs, it’s important to know exactly which options are out there in the marketplace.

This expert guide to understanding life insurance will allow you to purchase the right policy for you. 

Forms of Life Insurance

There are myriad forms of life insurance, and each type has its own pros and cons. What works for one person may not work as well for another, so we’ve created an easy-to-understand list of common forms of life insurance, along with their most important characteristics and positive elements. Once you’ve familiarized yourself with the various types outlined here, you’ll be ready to ask your online insurance provider for a quotation:

The Benefits of Term Life Insurance

This form of life insurance has many positive elements, and it’s one of the most popular choices for the average’s buyer’s requirements. With term life insurance, coverage is offered for a select amount of years, and the policy holder pays a static (unchanging) fee for as long as the policy lasts. This form  is the opposite of permanent life insurance, which is a combination of whole and universal insurance policies; if you’re interested in buying insurance protection for a limited time (rather than forever), term life insurance may be just the ticket.

Whole Life Insurance is Costly, But Comprehensive

Whole life insurance cost more, but it may be worth it for some buyers; this sort of insurance type provides buyers with death benefits, and it also carries a fixed free (or premium) that won’t change over time (if you’d rather go for a variable rate, choose variable whole life insurance instead). With fixed-rate,  you’ll gain access to a monetary value growth rate – all you need to do to keep your policy valid is agree to pay a set fee according to a payment schedule. Easy and straightforward, whole life insurance with a fixed rate is a blue-chip policy that offers a significant level of financial payout in the event of death.

Within the “whole life” insurance type, there are various subtypes of insurance that feature adjustments to the basic premium model; examples include single premium whole life insurance and interest-sensitive whole life insurance (as well as variable whole life insurance, as mentioned earlier). To find what is best for you, talk to a licensed insurance agent on or offline.

Universal Life Insurance Requires More Participation from Policy Holders

Universal life insurance is a comprehensive policy with permanent features; it provides the buyer with affordable mid-range premiums that are not too costly. This type of insurance does not have a contracted fee payment schedule, so the buyer must actively participate in keeping the policy valid. An insurer will set charges which the policy holder must keep track of; this sort of insurance has a different funding setup than most other types of life insurance; however, it is a workable policy type for many organized and diligent buyers. The cash value of insurance payments must be equal to charges set out by the insurance provider… as long as this balance is maintained, this permanent form of life insurance remains valid. Another common subtype of universal life insurance is universal term life insurance talk to an insurance agent to find out which form of universal life insurance will work best for your needs.

Getting the Gist of Special…

The trio of insurance types shown above represents just a sampling of the bounty of life insurance policies that are available to buyers. Most other forms of life insurance fall into the catch-all category of “special life insurance” – typically, these auxiliary forms of insurance include adjustable life insurance, and participating life insurance (among many others). The best person to counsel you regarding these other types of special life insurance is a skilled insurance agent with years of industry experience, so reach out to an agent today.

Achieve Your Financial Goals with Special-purpose

There are ways to use your life insurance policy to move closer to your personal financial goals – This clever trick is achieved through special-purpose life insurance that ameliorates your fiscal situation. Dual-purpose life insurance is not for every client, but it does offer distinct advantages to clients who want more from their life insurance policies. For example, financial goals may be met more easily with credit life insurance or group life insurance.

Credit life insurance is frequently used by people who owe large sums of money on long-term loans, such as mortgages. In the event of death, insurance will provide the deceased’s beneficiary (or beneficiaries) with enough money to cover the balance of an outstanding loan. For estate planning or greater financial security of survivors, credit life insurance makes a lot of sense…

For business owners, group life insurance protects a number of people, versus just protecting a single person…this type of insurance policy may be more affordable than insuring individuals separately, and it may also help to build an affordable employee benefits plan that boosts staff morale.

There are several subtypes of special-purpose life insurance – your insurance agent can explain which ones are right for your financial goals…

Protect Your Company with Business Life Insurance

Businesses may be protected from financial calamities just as though they were individuals, as long as a business owner or board of directors selects a special type of life insurance known as business life insurance. This form of insurance protects a company from the negative fallout that often accompanies a key partner or employee’s death. If you’ve got incredible talent at your disposable that is basically irreplaceable, consider insuring this staff member and safeguarding the longevity and prosperity of your business. A reputable agent can explain further benefits of business life insurance.

Even High-Risk People May Qualify for Special Risk Life Insurance

Sometimes, having a pre-existing medical condition may make it difficult to get the life insurance that you want and deserve; however, there is a type of special risk life insurance that is available to almost everyone. Other examples of prime candidates for this type of insurance include people who take part in dangerous, life-threatening activities, such as hang gliding or bungee jumping. Basically, if you’ve got a troubled medical history or you’re an adrenaline junkie, you’ll be able to get coverage of this type…however, it will definitely not be inexpensive, and many conditions will apply.