In the United States, life insurance has become somewhat of a necessity. Many of us have outstanding mortgages and loans that we don’t want to burden our loved ones with, should we pass away suddenly. Insurance companies offer different types of life insurance plans to meet the needs of different people in terms of coverage, premiums, and other aspects.
In this article, you’ll read about the six common types of insurance coverage:

1. Guaranteed issue life insurance
Guaranteed issue life insurance is a special type of life insurance that doesn’t require medical underwriting. This means you can obtain coverage without undergoing a medical examination or answering health questions. Taken at face value, this sounds like an ideal way to purchase life insurance. However, there are two big catches. First, it is more expensive than other types of life insurance because the company assumes you are at greater risk of dying if you’re willing to purchase coverage without proving your good health first. Second, guaranteed life insurance is only available to people who meet certain criteria — for example, the elderly.

2. Variable life insurance
Variable life insurance policies are also known as equity-indexed life insurance (EILI) policies. They’re designed to be a great investment, with more opportunities for growth than traditional whole-life policies. Yet, EILI still provides a range of benefits and cash value similar to that of whole-life insurance. These policies are not the same as cash value life insurance (CVLI). CVLI policies offer various cash value options; however, there is no equity component to these products. Variable life insurance offers both an equity component and a guaranteed death benefit.

3. Simplified issue life insurance
Simplified issue life insurance is a term life insurance that doesn’t have the same restrictions as regular life insurance policies. It’s also referred to as non-medical life insurance. Although you will not be required to have a medical exam, you will still fill out a health questionnaire to determine eligibility.

4. Whole-life Insurance
This type of life insurance is one of the more popular options available. This insurance is also referred to as permanent insurance, as it covers you for your entire lifetime and does not have a term that expires. This can be very appealing to individuals looking for long-term financial security and want the security of knowing they will have life insurance coverage for as long as they need it. With whole life insurance, the policy owner pays a predetermined premium each month to receive certain benefits upon their death. One benefit that many people find helpful with this type of policy is guaranteed cash values.

5. Universal life insurance
Universal life insurance coverage has been extended to provide additional benefits, improve the protection provided, and increase death benefit amounts. The following are some features of this insurance:

• A level premium payment that will never increase or decrease (as long as premiums are paid on time).
• No cash value. Permanent life insurance is designed for the sole purpose of providing death benefits.

6. Term life insurance
This insurance may be the most popular kind of life insurance. This type of policy is generally cheaper than a whole life policy because it covers you for a limited period (usually 10, 15, 20, or 30 years). Term policies are renewable and can be converted to permanent coverage at their expiration if you want. The premiums on a term policy are unaffected by how long someone lives. A term policy does not build cash value. However, some term policies come with other benefits, such as a waiver of premium if the insured becomes disabled. Look for a good insurance company, like AARP life insurance, to enjoy such benefits.