1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona


    Video Transcript:

    Today's question is, "What are the different types of life insurance?"
    Well, you have term life insurance in 5, 10, 15, 20, 30, sometimes even 40 years. You have permanent forms of life insurance, participating whole life. You have current assumption Universal Life. You have indexed Universal Life. You have variable Universal Life. These are all different types and forms of life insurance. Depending upon if you need temporary coverage or you need permanent coverage will dictate what area you'll go in.

    Then in the second area, if you're looking at permanent insurance, are you using this exclusively to cover and protect or are you going to add this on as part of your supplemental income retirement plan to add on to maybe your traditional 401(k) or whatever other retirement plan you have. It's interesting. If you're going to do that, you're going to need to do a risk tolerance to see how you feel about long-term hold positions with life insurance and which one that you're going to use whether it's interest rate, indexed or separate sub-accounts.
    Answered on November 11, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The two main types of life insurance are Term and Permanent. Term insurance is designed to provide protection for a set number of years. When the term ends, the policy ends, or else jumps up in price so much that most people do not continue it. Permanent insurance can be set up to last the rest of your life. It can have cash value.. The most popular types of Permanent insurance are Whole and Universal Life.
    Answered on November 20, 2013
  3. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Steve named several types of life insurance above here, and Peggy named the 2 main categories: Term and Permanent. However there are a number of other types of life insurance designed for specific situations. For example there are "Buy Sell Agreements" which is insurance designed for business partners. That type provides for the buyout of the deceased partner's interest so the surviving partner (s) can retain the business and the deceased's survivors don't loose out on income.

    Similarly there is "Key Man" insurance where a company insures the life of a key person so that the company doesn't suffer over much due to the death of that key person.

    There are joint and survivorship life policies where married couples are both insured under the same policy. One type pays the death benefit on the death of the first to die, the other pays the death benefit on the death of the last to die. That one is usually designed to pay for estate taxes so the beneficiaries of the estate aren't hit with a huge tax bill. And there are more!
    Answered on October 18, 2015
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