Life insurance

Ordinary life insurance is insurance on a person's life for a set premium where the amount never changes for the lifetime of the person paid yearly.

Permanent life insurance is issued in the form of whole life or endowment that covers the entire life of the insured, the total payout is guaranteed at the close of the active policy and the policy accrues monetary value.

Return of premium life insurance is a category of a term life insurance policy and the idea is that the policy gives back the money you have already paid for coverage over that set term period if the coverage isn't ever used. For instance, a $1,000,000 insurance plan obtained for $50,000 across the span of 30 years would end in the $50000 being given back to the policy holder.

Stranger-Originated Life Insurance, often referred to as STOLI is a type of life insurance arrangement, where speculators, who do not have any relationship to an individual, begin an insurance policy against their life and make the premium payments as an investment. Stranger-Originated Life Insurance can be considered as a "mortality futures" transaction where certain groups have a single expectation as to the future value of the article being traded that is the object of the “futures contract”, while other groups have a separate expectation of what the future value of that object of trade.

Universal Life is a kind of permanent life insurance based upon a cash value. The policy is setup with the insurer so that premium payments greater than the cost of insurance are issued as cash value. The cash value is given each month with interest, and the policy is debited every month using a cost of insurance a.k.a COI charge, and any other policy charges and fees which are pulled from the cash value if there isn't a premium payment made that month. The interest credited to the account is figured out by the insurer. Sometimes the credited interest is pegged to a financial index such as a bond or other type of interest rate index.

Variable Universal Life Insurance, oftne called VUL is a kind of life insurance policy that grows a cash value. In Variable Universal Life Insurance, the monetary value is able to be invested in a large range of separate accounts, similar to that of a mutual fund, and the option of which of the available separate accounts usable is completely up to the contract owner.

Whole Life Insurance a.k.a Whole of Life Assurance is a life insurance policy that stays enforced for the insured's entire life and usually requires premium payments to be made yearly onto the policy.