Life Insurance Plans

GMV Solutions wants to help you protect your future with the right life insurance plan.

Types of Life Insurance Plans

As with all insurance, there are many different types of life insurance plans: 

Indexed Universal Life Insurance (IUL): IUL insurance is a type of permanent policy where the cash value’s growth is tied to a stock market index, such as the S&P 500. Policyholders can benefit from market gains, up to a capped rate, while avoiding losses due to a guaranteed minimum interest rate.

Final Expense Insurance: Final expense insurance, also known as burial or funeral insurance, is a type of whole life policy designed to cover end-of-life expenses, such as funeral costs and outstanding medical bills.

Term Life Insurance: Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. If the policyholder dies during this term, the beneficiaries receive a death benefit. If the term expires, the policyholder typically has the option to renew, convert to permanent insurance, or let the coverage lapse.

Universal Life Insurance:  Universal life insurance is a flexible form of permanent insurance that allows policyholders to adjust premiums and death benefits. It also has a cash value component that earns interest.

Variable Life Insurance: Variable life insurance is a type of permanent policy that allows policyholders to invest the cash value in various investment options such as stocks, bonds, or mutual funds. The death benefit and cash value depend on the performance of these investments.

Whole Life Insurance: Whole life insurance is a type of permanent insurance that provides lifelong coverage as long as premiums are paid. It also includes a cash value component that grows tax-deferred over time.

When to Enroll in a Life Insurance Plan

Enrollment for life insurance can vary depending on the type of policy and the provider. Here are the common scenarios:

Employer-Provided Life Insurance: This insurance is often offered as part of a benefits package, with enrollment typically occurring during the employer’s enrollment period. Some plans allow enrollment upon hiring or during a qualifying life event (i.e., marriage, birth of a child).

Guaranteed Issue Policies: These policies do not require a medical exam and are often available year-round. However, they may have higher premiums and lower coverage limits.

Individual Life Insurance: You can apply for individual policies at any time, though acceptance and premiums depend on factors like age, health, and lifestyle. To secure lower premiums, it’s generally advised to enroll when you’re younger and healthier.

Special Enrollment Opportunities: Some providers or circumstances, such as group policies through associations, may offer limited-time enrollment windows.

Understanding these options ensures you don’t miss the chance to secure the right coverage for your needs.

What to Consider When Choosing a Life Insurance Plan

When selecting a life insurance policy, consider the following:

Budget: Assess your ability to afford premiums both now and in the future

Coverage Needs: Calculate the amount of coverage required to meet your family’s financial needs

Financial Goals: Determine whether you need temporary coverage (term) or lifelong protection (permanent)

Health & Age: Younger, healthier individuals typically qualify for lower premiums, so it’s an opportune time to invest 

Investment Preferences: If you want to build savings or invest, explore policies with cash value components

Why Reviewing Your Life Insurance Policy Is Crucial

Life insurance is a powerful tool for protecting your family’s financial future, but purchasing a policy and forgetting about it can be a costly mistake. Life changes—such as marriage, the birth of a child, a new home, or a change in income—can significantly affect your coverage needs. Regularly reviewing your policy ensures it continues to align with your current life circumstances, financial goals, and responsibilities.

Updating your policy can help you avoid common pitfalls, like outdated beneficiary designations or insufficient coverage for your growing financial obligations. You may also uncover opportunities to reduce premiums or enhance your benefits, especially if your health has improved or new, more competitive policy options have become available. For policies with a cash value component, regular reviews help ensure the policy is performing as expected and supporting your long-term goals.



Additionally, changes in tax laws or estate planning strategies can impact how life insurance fits into your overall financial picture. A periodic policy review—ideally once a year or at major life milestones—can help you adapt to these changes, maximize your policy’s value, and ensure your loved ones are fully protected.