Types Of Life Insurance Policies 

Rebecca Parson
Rebecca Parson

Rebecca Parson

Author

Rebecca Parson is a financial and tech writer with 10 years of experience writing about topics such as life insurance, commodities investing, and the SaaS industry. She has a master’s degree from Johns Hopkins University and a bachelor’s degree from the University of Mary Washington. Her writing has appeared at money.com, sacbee.com, cart.com, herodevs.com, blanchardgold.com, and more.

Brian OConnel
Brian OConnel

Brian O'Connel

Contributor

Brian O’Connell has been a contributing writer for U.S News & World Report since 2016. A former Wall Street bond trader and the author of two best-selling books; “The 401k Millionaire” and “CNBC’s Creating Wealth”, he has 20 years experience covering business news and trends, particularly in the business and financial sectors. He believes education is the best gift a financial consumer can receive – and brings that philosophy to every story he writes. His byline has appeared in dozens of top-tier national business publications, including CBS News, Bloomberg, Time, MSN Money, The Wall Street Journal, CNBC, TheStreet.com, Yahoo Finance, CBS Marketwatch, and many more.

By Rebecca Parson, Brian O'Connel
Author, Contributor, Life Insurance

All Life Insurance Policies can be sold in a life settlement transaction if the insured meets the requirements set by the life settlement investors of these policies. 

Policies that can be sold include – 

  1. Universal Life Insurance: This type of life insurance provides a death benefit and a savings account. The policyholder can adjust the premium and death benefits to suit their current circumstance, granting them flexibility.
  2. Whole Life Insurance: This is a permanent life insurance policy that guarantees payout upon the insured’s death or when the insured person turns 100 years old, whichever comes first. It includes an investment component, known as the policy’s ‘cash value,’ which gradually accumulates tax-free.
  3. Variable Life Insurance: In this policy, the cash value is invested in several sub-accounts similar to mutual funds. The value of the death benefit may fluctuate based on the performance of the investment choices. However, the policy will not lapse if the cash value falls to zero provided the premiums are promptly paid.
  4. Term Life Insurance: This is the simplest and often cheapest form of life insurance, which provides coverage for a specific term, typically 10, 20, or 30 years. A death benefit is paid out if the policyholder dies within the term. If the policyholder survives the term, no payout is made.
  5. Joint Life Insurance: Designed for couples, this policy covers two people and pays out on the first death. It is generally cheaper than buying two separate policies.
  6. Key Person Insurance: This type of life insurance policy is taken out by a business to compensate for the financial loss that would occur if a key employee or executive died.
  7. Group Life Insurance: This is a type of life insurance where a single contract covers an entire group. Most often, the policy owner is an employer and the policy covers the employees. Coverage is typically offered as a piece of a larger employer or membership benefit package. Federal Employees’ Group Life Insurance (FEGLI) is the group term life insurance policy that covers US federal employees. It provides Basic coverage, with several options for additional coverage.

These life insurance policies can be sold if certain requirements are met in a life settlement transaction. Reach out to the team at Beca Life to learn more

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