Special Types of Life Insurance

 

Are you looking for ways to get more out of your life insurance policy? If so, you might want to consider adding a rider or purchasing special forms of life insurance that provide you with the extra coverage you are looking for. Here is a look at some of the special types of life insurance you might want to consider pursuing in order to make certain your loved ones are properly cared for when you are gone.

Adding a Rider

One thing you might want to consider doing is to simply add a rider to your current life insurance policy. With a rider, changes are made to your insurance policy in order to meet specific needs. One rider that is commonly added to life insurance policies is an accidental death policy, which is also referred to as a double indemnity rider.

With an accidental death rider, your beneficiary will receive twice the payout if your death is due to accidental causes. In short, adding this clause to your policy essentially provides you with a full coverage policy as well as an accidental death policy.

Another rider you might want to consider adding to your policy is a premium waiver. With this rider, the cost of your premiums is waived if you become disabled. In this way, if you are seriously injured or become ill, you will still be able to keep your life insurance policy in place.

Joint Life Insurance

Another type of insurance you might want to consider obtaining is joint life insurance. With this type of insurance, you insure two or more people with the same policy. A joint life insurance policy can be either term or whole life. Either way, the beneficiary receives payment after either the first or second death.

Survivorship Life Insurance

Like joint life insurance, a survivorship policy covers the lives of two people. With this type of policy, however, the beneficiary only receives payment after both people have passed away. In addition, this type of policy is only available as a whole life insurance policy rather than a term life insurance policy.

Single Premium Whole Life Insurance

With a single premium whole life insurance policy, you only pay one premium rather than making premium payments every month, quarter or year. This payment, which is obviously going to be much larger than the premium payments you would make with the traditional payment setup, is due at the time the policy is issued.

Modified Whole Life Insurance

With a modified whole life insurance policy, you pay smaller premiums payments for a specified period time. After this period is over, your premium payment amounts increase for the life of the policy.

Group Life Insurance

With group life insurance, the policy covers a group of people who are connected in some way. Generally, this type of policy is provided to people who are employed by the same company or to members of an association or union. The size of the group as well as its turnover rate are both taken into consideration when determining premium rates.

Preneed Insurance

Also referred to as final expense insurance, funeral insurance and burial insurance, preneed insurance is designed to provide the policyholder with the funds necessary to pay for final burial expenses. Since these policies have a lower face value, it is much easier for seniors to obtain a policy as well as for those with pre-existing medical conditions

Mortgage Life Insurance

Mortgage life insurance is designed to pay off the policyholder's mortgage loan after he or she passes away. Although the premium amount stay the same throughout the life of the policy, the total value of the policy decreases as the amount owed on the mortgage loan decreases. Once the mortgage loan is paid off, the policy expires.