6 Other Types of Life Insurance Every Policyholder Should Know About
Knowing about the basic types of insurance out there is a great start towards finding the perfect solution. Usually, an insurance agent will talk at length with any new customer to discover their particular needs so they can suggest a policy that makes the best fit.
There are a few other types of life insurance out there that provide specific solutions. In certain cases, it just makes sense to go with these prepackaged plans.
Here are 6 special-need types of life insurance everyone should know about before making an insurance decision.
1. Mortgage Life Insurance
One of the main concerns of insured people is what the loss of an income stream can mean for their family in the event of their passing. This is particularly true if they have costly bills to worry about, and for most that means the mortgage.
One unique form of insurance offered by life insurance companies, mortgage life insurance, can provide enough to pay off an entire mortgage in the case of the policyholder’s death.
The death benefit is paid directly to the beneficiaries and does not have to be used to pay off the mortgage.
Keep in mind that these policies are form of term insurance. It is not a permanent benefit.
2. Senior Life Insurance
If the policyholder is concerned about a beneficiary’s ability to handle a large cash payout directly after the occurrence of death, senior life insurance might be the answer. Instead of paying the entire death benefit at once, small amounts are released in the early years preceding the policyholder’s death. After a set period has passed, the entire amount is released.
3. Juvenile Life Insurance
For those who want to get their child off on the right foot with their insurance, juvenile life insurance policies are available. This is a way to build up cash value early in a child’s life while leveraging their low risk of death to access a low premium.
This provides a head start for the insured, building up a good deal of interest over those additional years.
4. Family Life Insurance
Losing anyone in the family can be financially devastating – not just the breadwinner. If the insured wants to cover the entire family, including the children, family insurance may be the answer.
This type of insurance is sold in units per person and allows for those who bring in the highest income stream to be insured for the most, reflecting the realities faced by the modern-day family.
5. Family Income Life Insurance
With family income life insurance policies, an income amount is agreed to be paid out for a certain number of years after the insured (usually the breadwinner) passes away, allowing the family time to prepare for a new standard of living.
6. Credit Life Insurance
Most people take on debt for a reason and accept the risks associated with that debt. But there’s one risk no one likes to create – the risk of leaving all debts behind for a grieving family.
Credit life insurance provides an answer. Like mortgage insurance, it pays off the balance of loans, whether they are car loans, education loans, or even credit cards.
Unlike mortgage insurance, however, credit life insurance is purchased through the financial institution orchestrating the loan in the first place. Payouts are made directly to the lender rather than the family of the deceased.
Do any of these life insurance types seem to be the perfect match for what you’re looking for in a policy? Get in touch with a seasoned professional today to discuss more or find out if there is something else you don’t know about.
Your Insurance Journal – Get Daily Updates From The Insurance News Authority