Although every insurance policy is purchased with a purpose in mind, special purpose policies are developed to accommodate a specific purpose. The special purpose policy offers added features to allow the policy owner an advantage or a leeway to direct the purpose of the policy. The purchase of special purpose policy is same as purchasing a favor on policy because the policy benefits are controlled for a specific goal. The applicants’ needs are met by application of special purpose policies which are different depending on applicant request. Different special purpose policies exist for different purposes.

Since the insured or policy holder needs might change, there is a provision of adjustable life contract which allows the policy owner to change the insurance policy from one type to a different policy. The policy owner is not restricted to the original provision of the contract and can alter policy type as the beneficiary needs changes or as his/her objectives change

With adjustable life contract the policy owner has the flexibility of changing the life policy from one type of insurance to another. The structure of change is determined by premiums paid and death benefits. A contract with low premium payment and high death benefits can be switched to term life policy. The switching from one policy to a different policy will highly be determined by premiums paid and can be performed as often as one month or at contract anniversary. In case of increase of death benefits increasing insurer risk there is a high probability of request to prove insurability of the insured.

For the purpose of including the all the members of the family the policy holder can erect to bundle the whole family in one policy. The spouse, children and consequence adopted or step children are included. The advantage offered by selection of family protection policy is passed to children because prove of insurability is not required when the children reach the age of majority and decide to convert permanent plan.

A family income policy contract is effective in providing additional income for a family with young children. The contract combines the whole life and decreasing term insurance. A monthly income is available to the beneficiary in addition to the policy face value payment if the insured dies during the specified time. The income is provided up to the specified term period. Where insured dies after the term period only the face value of the policy is paid. Mortgage redemption contract safe guards the family home by paying the reminder of the mortgage upon the death of the insured. The contract is designed to decrease as the mortgage balance reduces and if the insured dies before paying off the debt, the insurance end up paying the mortgage balance or policy owner can choose to leave the money to the beneficiary for mortgage balance payment.

Different special purpose policy serves to fulfill different applicants’ needs. For instance, an applicant can decide to utilize deposit term policy to buy the coverage and at the same time creates a saving which will accumulate interest. The deposit term policy requires payment of excess premium in the first year in addition to the regular premiums; the excess deposit is left to accumulate interest for specified number of years and there after when the period is over the policy owner receives deposit and interest or can renew the policy without the prove of insurability. The policy can also be converted to permanent plan in future. Where the insured dies before the specified date of receiving deposit and interest, the deposit plus interest is added to the death benefits. When the policy is renewed or converted to a whole life policy, the deposit and accumulated interest is applied in reducing the premiums payment for the future years.

The policy application should be guided by special needs of the applicant to create the bullet points to design or suggest the best coverage. Time and analysis is of essence when selecting the best policy.