The Four Different Types of Life Insurance

There are four different types of life insurance: variable life insurance, universal life insurance, whole life insurance and term life insurance. When purchasing life insurance for yourself or a member of your family, it’s helpful to understand the different types before making your final decision.

Variable Life Insurance
A variable life insurance policy is a permanent policy that provides a variable death benefit to a designated beneficiary upon the policy holder’s death. With a variable policy, you can allocate part of your premium to investment subaccounts composed of a combination of equity funds, bond funds, money market funds and stocks. If your investments earn a good return, you can apply this amount to your premiums and reduce your out-of-pocket cost, or you can allow them to build up in the investment subaccounts.

Universal Life Insurance
If you purchase a universal life insurance policy, you will schedule to pay a minimum premium, but you can opt to pay in more or less depending on your circumstances. However, unlike a variable insurance policy, you can’t choose your own investment subaccounts. In most cases, your extra funds will be applied to the policy's cash value and earn a monthly interest crediting rate.

Whole Life Insurance
A whole life insurance policy is a permanent policy that can cover you for the duration of your life and pays a set amount to your beneficiary when you die. The Family Plan Whole Life policy from Gerber Life offers you coverage amounts from $50,000 to $1,000,000. One of the greatest benefits of whole life insurance is that you can keep the policy throughout your entire lifetime at a premium rate that will never increase as long as premiums are paid. Whole Life insurance also builds cash value that can be borrowed against if needed.*

Term Life Insurance
Perhaps the simplest form of life insurance, term life insurance covers you for a specific period of time in exchange for the payment of a predetermined premium. You determine the length of the policy when you purchase it. If you die before the term ends, your beneficiary receives payment. If you are still alive when the policy’s term resolves, you can surrender it, renew it or convert it to a different type of policy. With Gerber Life’s Family Plan Term Life insurance, your option to renew is guaranteed — without a physical — at the end of your term.

Which type of life insurance plan is right for you? Compare the different types of life insurance policies and request a quote from Gerber Life to weigh your options.

*Policy loan interest rate is 8%. Loans may impact cash value and death benefit.