There are many types of life insurance policies and they can be confusing. The list below gives you a sense for the variety of policies available to you. For definition of the most common types of policies, click on the links on the menu (left).
Disclosure Notice:
The information above is intended to serve as a basis for further discussion with a financial, legal, tax and /or accounting advisor. It is not a substitute for competent advice from these advisors. Although great effort has been taken to provide accurate data and explanations, and while the sources are deemed reliable, the information that follows should not be relied upon for preparing tax returns or making investment decisions.
Types of Life Insurance Policies:
- Decreasing Term - A policy which has a level premium, a decreasing death benefit, and no accumulation of cash values.
- Annual Renewable Term - A policy which has a premium which increases at each annual policy renewal and no cash-value accumulation
- Long-Term Level Premium Term – A policy which has an annual premium that is fixed for a specified period of time, typically, 10,15,20, or 30 years. The death benefit remains constant, and there are no accumulated cash values.
- Universal Life – This policy separates and identifies the mortality, expense, and cash value parts of the policy. Premiums for most Universal Life policies remain level.
- Whole Life – A policy that is designed to stay in force throughout one’s lifetime. Premiums for most whole life policies remain level.
- Variable Life and Variable Universal Life
- Single Premium Whole Life