Specialized Life Insurance Policies


Types of Specialized Life Insurance Policies:

Life insurance has many uses, and there are life insurance policies to cover just about everyone who has a financial need. It helps to think of each type of life insurance like different tools; each tool has a purpose.

When money is needed, and you do not have it in the bank, life insurance is a great “tool’ that will be an important financial safety net for you, your family, and your business.

Life insurance policies can be even be designed to protect different professions and occupations, such as firemen, policemen, EMTs, doctors, teachers, etc.

College Expenses

One way to protect a college student from not being able to attend or complete their college education is through a life insurance policy. The parents could take out insurance policies on themselves, so that, if one of them died, the student’s college education is paid.

Grandparents often love to help put their grandchildren through college. They can do so by taking advantage of the annual $14,000 tax-free gift exemption for each grandchild. If they are worried they may not have enough time to pay for the complete education, they can take out a life insurance policy on themselves that would pay for the grandchildren’s education when they die.

IUL’s may also be a consideration for some people to invest in a college-bound child’s education.


Often, life insurance policies can supplement or replace retirement income. If a spouse’s retirement would end upon their death, leaving the surviving spouse with little money to live on, a life insurance policy is a fantastic investment.

Life insurance can replace the income that would go away when a spouse dies.

One can also take out loans on whole life policies, or IUL balances, to supplement income or pay for any other financial obligations.

Wealth Preservation

A life insurance policy can pay for estate taxes, pay off existing debts, or provide for business buyouts should a business partner die unexpectedly. What one has spent a whole life accumulating, often goes away without proper financial planning and life insurance decisions. Your life insurance investment strategy will be unique, and your insurance agent can help you select the proper life insurance investment.

Charitable Giving

Leaving life insurance to charity organizations is a great way to help others! If upon your death, you want to make a difference with a charity you have a passion for, you can take out a life insurance policy and have the charitable organization be the beneficiary. This is a wonderful way to make a difference in an organization, and the people it helps!

The money from your insurance policy is donated tax-free to the charity of your choice. Gifting a life insurance policy to a charity will help make sure you are remembered for generations to come.

Keeping the Home

Life insurance mortgage payoff policies will make sure your home is protected if a loved one dies before your house is paid off. These policies help keep the surviving spouse and family in the home when it is most at risk…immediately after losing a loved one.

Grandparents are often interested in keeping their home within the family. Life insurance on a mortgage loan is a great investment to protect a home and keep it within the family.

A paid off home can also provide a lifetime of passive income for the surviving family members if they rent the home. This way, the family retains ownership of the home, participates in market increases in value, and receives a check in the mail every month from their renters.

If you are asking yourself “mortgage life insurance, do I need it?”, ask your family members if they would like to stay in your home if you died unexpectedly…I’m guessing they will.

Paying Off Debts

Many people spend more than they earn and have unsecured credit card debt, auto loans, business loans, etc. Life insurance debt protection policies pay off these debts, so the surviving spouse need not pay them off. All problems have price tags, and somebody always pays…do not make it be your spouse!

Paying Estate Taxes

Using life insurance for estate planning is the right fit for some people. If you are in a higher tax bracket and have enough wealth accumulated, you may have to pay large estate taxes. Imagine having millions of dollars in assets, and your family or loved ones losing them when you die, because they could not pay the financially crushing tax obligations of estate taxes.

Life insurance estate planning solves taxes and other estate problems.

Creating More Inheritance

Using life insurance for inheritance is a popular option for many people. If you could not generate the wealth you had hoped for, you can purchase a life insurance policy that will pass down extra money to your loved ones.

Business Uses

Cross Buy-Sell Life Insurance Agreements

Cross buy-sell agreements are when each owner or business partner purchases life insurance policies on the other partners. The policies are typically equal to the value of the ownership stake they each have in the business. These plans are structured in a way that the policy owner’s heirs can sell their ownership share in the business to the surviving business partners.

Group Life Insurance Policies

Group life insurance for employees of the business is a terrific benefit for your employees. It can help you attract and retain better business talent within your organization. It also helps protect the worker’s family should an unexpected death occur. Most often, these policies are paid for by the employer.

Some companies offer employees the ability to purchase additional life insurance should they have the need for more insurance protection.

Key Man Insurance – Key Person Insurance

In any business, key people are responsible for the success of the organization. Losing a key person to an unexpected death causes many businesses to fail or bankrupt.

Having a key man life insurance policy protects not only the business but also all the employees and customers who rely on the business.

Business Loan Life Insurance

If your business must get a personal or small business loan, banks will often require a life insurance policy to be in place to act as collateral for the business loan. Term policies are a great solution for these business loan obligations.

Most insurers offer term policies beginning at 10-year terms. There are, however, some insurance companies that offer renewable policies in 1 year annually renewable increments or 5-year life insurance policies.

Independent life insurance agents such as Life-Wealth-Win, are the best place to find these insurance companies.

Business Startup Life Insurance

If you need to start a business but don’t have the money, you can borrow against permanent life policies to get your business venture up and running. Life insurance policies with cash value offer you this flexibility.

Tax-free Life Insurance Investments

Because life insurance policies are paid with after-tax dollars, the life insurance proceeds are not taxable when received by beneficiaries. As your income tax rates increase over the years, you will have paid your income taxes with today’s less expensive tax burden.

Funds can also be withdrawn tax-free in loans from many life insurance policies.

Many companies also guarantee minimum interest rates within their life insurance cash value policies that guarantee you will lose no money, regardless of the current interest rate or what the stock market does.

Chronic or Terminal Illness

Many life insurance policies will allow you to access your insurance benefits before your death if you become chronically ill or terminally ill. A percentage of your life insurance policy can often pay for medical expenses and other financial needs while you are still alive.

All companies have different policy requirements, so review the specific language within each insurance contract.

Types of Specialized Occupational & Recreation Life Insurance Policies:

Life-Wealth-Win will help get your loved ones, family, and business protected! Call us at (888) 435-4342, or get your free life insurance estimate by clicking the link below.