3.1 Categories of Life Insurance
Life insurance in force in the United States at the end of 2007 totaled over $19.5 trillion, a 2% increase over 2006. The average face amount of a newly purchased individual life insurance policy rose from $167,000 in 2006 to $175,514 in 2007.
Since most new life insurance policies are purchased by individuals from life insurance agents, you will need to familiarize yourself with the three basic categories of coverage upon which the life insurance world revolves.
- Ordinary - the most common
- Industrial - smaller face value policies
- Group - coverage for specific groups
