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# Specialized Life Insurance Policies

There are a number of life insurance polices that have been designed to meet the needs of special situation or circumstances. These plans are actually combinations or modifications of whole and term life policies. Some of the more common programs are listed below.

The family protection policy provides coverage for each of a family's members at the time the policy is issued. This combination policy usually provides coverage for the principal wage earner equal at four times the spouse's and five times the children's coverage amounts. For example, the Smith's family policy might provide $100,000 of coverage for Mr. Smith, $25,000 for Mrs. Smith and $20,000 on each child. In this example, the wife and children's coverages would ordinarily consist of term insurance while Mr. Smith's would be a permanent policy. These additional coverages are commonly known as spouse term- and family riders, respectively.

Under a family policy, term coverage is provided at no additional cost for children born or adopted after the policy is issued. This coverage expires on each child as he or she reaches a specified age â€?usually18 or 21, but sometimes as late as 25. The term coverage on children is usually convertible to any permanent insurance without evidence of insurability.

The retirement income policy accumulates a sum of money for retirement while providing a death benefit. Upon retirement, the policy pays an income such as, for example, $10 per $1,000 of life insurance for the insured's lifetime or for a specified period. Retirement income policies are expensive, and cash value accumulation is high to pay for the monthly income. It must also be noted that once the accumulated cash value approaches the policy's face amount, the face amount must be increased to maintain the policy's status as life insurance.

A joint life policy insures the lives of two or more people. This plan may pay the face amount upon the first death among the persons covered by the policy or upon the last death among the persons covered. Under a 'first-to-die' joint-life policy, the death benefit is paid and the contract comes to an end at the first death and there is no further insurance protection for the other person or persons covered by the policy.

'Second-to-die' (or survivor) life insurance covers two lives and provides payment only when the second insured dies. Premiums â€?which can be significantly less than if the two lives were insured separately â€?usually continue to be payable until the second death. Second-to-die policies are very useful in estate planning. When a surviving spouse dies, the policy can provide money to pay taxes on assets that may have been sheltered at the first death by the marital deduction.

Juvenile policies can consist of whole life or term insurance, depending on the purpose of having the policy. The criterion for juvenile insurance is that it be written on the life of a person who is not yet considered an adult for life insurance purposes. In most areas, this includes anyone who's under the age of 15. One of the more popular juvenile plans that parents purchase for their children is called the jumping juvenile policy. Initially, the face amount of this policy may be as little as $1,000. However, when the child turns 21, the policy's face value automatically 'jumps' to a level that's usually five times greater than the original face amount with no increase in premium and no evidence of insurability required.

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