There are several types of life insurance available, all of which offer different benefits and are geared toward different situations. They are Insurance Variable Life, Group Life Insurance, Credit Life and Home Service Life.
The first of which, Insurance Variable Life, is determined by the the stock market. The performance of the investments affected the not-fixed policy values.
Group Life Insurance is sold to companies to cover employees’ life insurances. This lowers the cost per person since it is divided up over a group of people. The diverse group will have different age and health situations, which may also reduce costs. It usually provides for an individual to convert their policy to an individual plan should that employer leave the firm that covers them.
For employees, this means low-cost life insurance or even free insurance; however, they will only be covered as long as they are employed by the company that provides their life insurance. This poses a risk if a person makes this their only source of life insurance.
Third, Credit Life, is a deal between life insurance companies and lending institutions. This is purchased to cover debts left by a person in the case they should die before being able to pay back their debts. Usually very expensive, it does not cover any other needs an individual might have, and it is recommended that a person purchase life insurance that cover all of their needs.
Finally, Home Service Life, was a formally popular type of insurance in the United States, particularly in large cities, but due to its expensive nature and necessity of labor by others, it has fallen out of favor. Debit agents made regular calls to home to collect payments and add new polices, which were designed to be paid weekly for very small amounts, such as a .25 or .50 cents. This type of insurance has mostly been forgone by companies but is still available in some areas.