Are there any specialized types of life insurance?

Yes! There are a number of policies for specific insurance needs. Some of these include:

1. Family income life insurance.
   This is a decreasing term policy that provides a stated income for a fixed period of time, if the insured person dies during the term of coverage. These payments continue until the end of a time period specified when the policy is purchased.
   
   
2. Family insurance.
   A whole life policy that insures all the members of an immediate family -- husband, wife and children. Usually the coverage is sold in units per person, with the primary wage-earner insured for the greatest amount.
   
   
3. Senior life insurance.
   Also known as graded death benefit plans, they provide for a graded amount to be paid to the beneficiary. For example, in each of the first three to five years after the insured dies, the death benefit slowly increases. After that period, the entire death benefit is paid to the beneficiary. This might be appropriate if the beneficiary is not able to handle a large amount of money soon after the death, but would be in a better position to handle it a few years later.
   
   
4. Juvenile insurance.
   This is life insurance on a child. Coverage is paid for by an adult, usually the parents or guardians. Such policies are not considered traditional life insurance because the child is not producing an income that needs to be protected. However, by buying the policy when the child is young, the parents are able to lock in an extremely low premium rate and allow many more years of tax-deferred cash value buildup.
   
   
5. Credit life insurance.
   This insurance is designed to pay off the balance of a loan if you die before you have repaid it. Credit life insurance is available for many kinds of loans including student loans, auto loans, farm equipment loans, furniture and other personal loans including credit cards. Credit life insurance can be purchased by an individual. Usually it is sold by financial institutions making loans, like banks, to borrowers at the time they take out the loan. If a borrower dies, the proceeds of the policy repays the loan directly to the lender or creditor. For more information about credit life, call the Consumer Credit Insurance Association at 312-939-2242 ( http://www.cciaonline.com/ }.
   
   
6. Mortgage insurance.
   This decreasing term coverage is designed to pay off the unpaid balance of a mortgage if you die before the mortgage is paid off. Premiums are generally level throughout the term of the policy. The policy is usually independent of the mortgage, meaning that the financial institution granting the mortgage is separate from the insurance company issuing the policy. The proceeds of the policy are paid to the beneficiaries of the policy, not the mortgage company. The beneficiary is not required to use the proceeds to pay off the mortgage.

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