Life Insurance
There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.
Life insurance products for groups are different from life insurance sold to individuals. The information below focuses on life insurance sold to individuals.
Term Insurance
There are several different types of term insurance you can consider:
- Renewable Term Insurance
- Convertible Term Insurance
- Level Term Insurance
- Increasing Term Insurance
Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.
Whole Life / Permanent Insurance
There are four basic types of permanent insurance:
- Whole Life
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- Joint Whole Life
- Survivorship Life
- Universal Life
- Variable Life
- Variable Universal
Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100. There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.