About Different Types of Life Insurance

Series Summary

Insurance is a form of risk management that is often overlooked until it is needed due to an accident or unfortunate incident. There are many different types of insurance, including health insurance, life insurance, car insurance and long- and short-term disability. While paying the monthly or semi-annual premiums is a pain and a financial burden for many people, the piece of mind and potential benefits are extremely necessary for anyone who can afford insurance. In this free video series on insurance, an experienced insurance broker explains the facts about life insurance. Find out the difference between term insurance and permanent life insurance. Get information on how the premiums for life insurance are determined and why life insurance is important. Learn how to use life insurance policies to build wealth and how the death benefit of an insurance policy works. Find the right life insurance policy to fit your lifestyle with help from an insurance broker in these free videos.

Video Transcript

"Hello, my name is Vic Schumacher, the company is HPE Financial Services. The question today is what are the different types of life insurance? That's a very broad question and it is a little difficult to answer. First of all, life insurance is really divided into two different areas. One is called temporary or term. The other one is called permanent, and under the permanent type there are three or four different styles. The ideas with the temporary or term is that you have a risk covered, and if that benefit has to be paid in a lump sum, it would be paid over a particular period of time. You might have a term plan that is let's just say twenty years long, that's the length of the term and at the end of that term, the policy goes away, it has not built any type of cash value and it is strictly an inexpensive way to go for life coverage. If you have a permanent type of coverage you could have a universal plan or a whole life plan or a variable plan. Forget the name of the type, the idea is it will build some sort of cash value and there will be some sort of death benefit that's available. The individual plans that life insurance plans, the purpose of them depend upon what is your purpose with the policy. I suggest you contact an advisor, tell them what your needs are, and have them do some recommendations for you. My name is Vic Schumacher, the company is HPE Financial Services, helping people everyday."