What They're For

• The most common types of industrial life insurance policies, also called small death benefit policies and street insurance, are for burial services.
  
  

How Are They Sold?

• Most often door-to-door salespeople sell industrial life insurance policies. They often return to collect payments as well.
  
  

Payment Plan

• Industrial life insurance policies can also be collected on a debit basis. This means that money will be deducted immediately from your bank account upon payment.
  
  

Fraud

• Alex Sink, chief financial officer of the state of Florida, believes industrial life insurance policies are fraudulent. This is because the participant often ends up paying more into the policy than what the policy is actually worth.
  
  

Don't Rush Into a Decision

• Read the entire contract and figure out the actual value of the policy, when you can expect to actually claim it and how much money you'll have to put in to do this.