Life insurance is one of the best ways of investment. When you opt for a life insurance policy, you can put your hard earned money to good use. Not only that, you will receive monetary assistance from the policy at your time of need. If you are looking for an insurance policy, the first thing that you should find out is the type of the insurance polices. There are various types of life insurance policies available in the market. Having a clear idea about the right type will help you to choose the most suitable one for yourself.
All policies can be divided into two main categories and they are: Term life insurance and Permanent life insurance. These two types of insurances can be divided into a few subtypes separately.
Term Life Insurance
It is the life insurance policy that provides life coverage for a certain period of time. Though there isn’t any clear division of this insurance, you can create a division depending on three key factors regarding the term life insurance. These three factors are,
From the name, it is completely clear that this type of life insurance is for a long time. If you approach the name from its actual meaning, then the technicalities may baffle you a little. Basically these life insurances continue until the policy gets older or the owner fails to pay for the premium. There are four types of permanent life insurance policies available in the market. They are:
These are all some common types of life insurance policies. Buy the one that suits you and your family and reap the benefits.
priyanka kumara
pgdm 2nd year.
All policies can be divided into two main categories and they are: Term life insurance and Permanent life insurance. These two types of insurances can be divided into a few subtypes separately.
Term Life Insurance
It is the life insurance policy that provides life coverage for a certain period of time. Though there isn’t any clear division of this insurance, you can create a division depending on three key factors regarding the term life insurance. These three factors are,
- Face value
- The premium you need to pay
- The time period of the insurance
From the name, it is completely clear that this type of life insurance is for a long time. If you approach the name from its actual meaning, then the technicalities may baffle you a little. Basically these life insurances continue until the policy gets older or the owner fails to pay for the premium. There are four types of permanent life insurance policies available in the market. They are:
- Whole life coverage
- Universal life coverage
- Limited pay
- Endowments
- Whole life coverage is the insurance policy which will provide lifetime death benefits coverage for a certain amount of premium. This rate of premium is quite higher than the other types of life insurance policies.
- Universal life coverage is another type of whole life coverage. It combines the facilities of the lifetime insurances with the flexibility of the premium rates and more value for the money you are investing in.
- In limited pay life insurance policy, the owner has to pay the premiums for a certain period and there is no additional premium after that.
- Endowment policy is the insurance where the cumulative amount of the policy ends for the death benefit at a certain age.
These are all some common types of life insurance policies. Buy the one that suits you and your family and reap the benefits.
priyanka kumara
pgdm 2nd year.
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