Types of Life Insurance
It comes in many shapes and sizes, but the different types of life insurance policies generally fall into two categories: term life insurance and permanent life insurance.
Types of Term Life Insurance Policies
Term life insurance is the most affordable policy available. It is designed to meet temporary life insurance needs; providing protection for a specified period of time, the term. For example, a term of 10, 20 or 30 years. This policy makes sense if you have financial needs that will diminish over time, such as a home mortgage or a child's tuition.
Each year, a premium is paid to cover the risk of death during that year. It has no cash value. The only way to collect anything is to die before it expires. If death occurs, the life insurance beneficiary generally collects the death benefit of the policy, free of income tax.
Learn more about the different types of term life insurance.
Types of Permanent Life Insurance Policies
Permanent life insurance provides lifelong protection. This policy never ends as long as the premiums are paid. In addition, permanent life insurance provides a savings element that accumulates a cash value over a long period of time.
>Learn more about the different types of permanent life insurance.
In addition to traditional term life insurance and permanent life insurance, there are many other types of life insurance available. Click on different types of life insurance policies below to learn more.
- Child Life Insurance
- Accidental Death Insurance
- Disability Insurance
- Final Expense Insurance
- No Medical Exam Life Insurance
- Long Term Care Insurance
- Critical Illness Insurance
- Life Insurance Riders
There’s no such thing as one life insurance being better than the other. The type of life insurance that suits your situation best depends on your personal and financial circumstances.