The Different Types of Life Insurance Policies Available

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There are many different types of life insurance policies available on the market today. It can be difficult to know which one is right for you and your family. Whether you’re shopping for Banner Life Insurance or any other life insurance company, it’s crucial to understand the various types of policies available to you. Keep reading to learn about the different types of life insurance policies and how to choose the best one for your needs.

Permanent Life Insurance


Permanent life insurance policies offer death benefits, along with numerous other features such as cash value and dividends.

The most common type of permanent life insurance policy is whole life. Whole life policies have a fixed premium that remains the same for the entire duration of the policy. The death benefit is also fixed and doesn’t change. Partially paid-up whole life policies allow the policyholder to pay fewer premiums in later years, but reduce the amount of the death benefit available at maturity or upon death.

Universal life is another type of permanent life insurance policy. Universal life policies are more flexible than other policies, in that the premiums and death benefits can be changed within certain limits to suit the needs of the policyholder. However, universal life policies don’t have a guaranteed death benefit. If premiums are not paid, the death benefit will be reduced or may even disappear altogether.

Term Life Insurance


Term life insurance policies are temporary life insurance policies that provide coverage for a specific period of time, or “term.” These policies are typically less expensive than other life insurance policies and are a good option for those who need coverage for a limited period of time.

Most term life policies have a stated duration of 10, 20, or 30 years. However, it is also possible to purchase a policy that has a duration of five or seven years.

When you purchase a term life policy, you will specify the duration of the policy, as well as the amount of coverage you need. The policy will provide coverage for the specified period of time and will expire at the end of that term.

If you die while the policy is in effect, the policy will pay out a death benefit to your beneficiaries. If you do not die during the term of the policy, it will expire and you will not receive any benefits.

Term life insurance is a good option for those who need coverage for a limited period of time, such as those who are in between jobs, or those waiting to purchase a permanent insurance policy. It is also a good option for young adults who are just starting out and don’t need coverage for a long time.

However, term life insurance policies don’t provide coverage for the entire lifespan, and there is no cash value accumulation. If you need coverage for your entire life, you will need to purchase a permanent life insurance policy.

Variable Life Insurance


Variable life insurance is a type of permanent life insurance policy that gives the policyholder the opportunity to invest their premiums in a variety of different investment options, such as stocks, bonds, and money market accounts. This type of policy is designed for people who want the flexibility to change their investment portfolio as they see fit. The downside to variable life insurance policies is that they can be more expensive than other types of life insurance policies and they also come with a higher risk. If the investments chosen by the policyholder perform poorly, the value of the policy could decline.

Life Insurance

When shopping for life insurance, you need to know the various types of life insurance so you can make the best decision for your needs. Everyone’s situation is different and many factors influence what type of insurance is best for you. So, consider your needs and compare them to these types of life insurance to find the best policy for you.


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Alexandria is an interior designer and stylist blogger. Based in Los Angeles, you can typically find her grabbing brunch with friends or attending a gallery opening for a cool new artist.