What Are The Principal Types Of Life Insurance?

You will most likely hear terms like WHOLE LIFE INSURANCE and TERM LIFE INSURANCE, when you ask this question to professionals, or go online to find answers, types and guidelines for choosing what is right for you.

The primary or main types of life insurance fall into these 'buckets' or categories if you will. Permanent, traditional, universal, variable and variable universal might also be terminology that can confuse and mystify. Individual and group type insurance also differ significantly. The TWO principal types of life insurance are:

The most simplistic form (and least expensive) types of life insurance is TERM INSURANCE (death benefits are only paid for the specified time, or term, period of coverage, typically 1 to 30 years), with no other specified benefits of any sorts.

But, there is more to it than that! Consider...

Level term insurance (stays the same) and
Decreasing term insurance, (diminishing over time)

These are the sub-types that might most likely include, depending on individual, specific needs, types, age, requirements, a:

10, 15, 20, 25, or 30 year term
5-year renewable term
Annually renewable term (most popular these days)
Specific age (usually 65) type term

Whole, ordinary life or permanent life insurance is the other side of the coin, paying out a death benefit whenever you die, regardless type coverage. Most commonly people opt for this option, paying premiums over a lifetime. Again, there are choices and types, sub-types and different ways to specify and plan coverage that is right for your needs:

Universal, adaptable/adjustable life insurance coverage may require a pass on a medical examination for starters.
Variable life insurance coverage also allows for savings and increasing benefits along the way, carrying more risk, but also specifying minimums might mitigate most of that, ensuring that it does not fall below a certain level due to stock market volatility.
Combinations and variations are all available in industry and comparative and price shopping is always a smart idea prior to any agreements or provider/policy type, coverage amount selection.

Whether simple, complex, expensive, cheap, basic or benefit-rich, cash value accounts, premiums, savings, discounts to work your way through. Partnering with an expert to take you through these different options, might be only part of the legwork upfront before making one of the most important decisions of your life. Get the help, advice, coverage and criteria you need to fit your unique situation, circumstance, requirements and pocketbook.

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