Type Of Life Insurance Policies

Today there is a wide variety of life insurance policies available the most basic of which are term and permanent.

Type of life insurance policies. If you die within the term the policy pays out to your beneficiaries. Long term saving option for people with much lower risk appetite for investment. Benefit of endowment plan. Depending on the contract other events such as terminal illness.

The life insurance company offers one or more investment options designed to match the growth rate of a well known index such as the s p 500 or nasdaq 100. Whole life policies a type of permanent insurance combine life coverage with an investment fund. Term life insurance policies are the simplest most popular and the most often purchased. Money back plan is a unique type of life insurance policy wherein a percentage of the sum assured is paid back to the insured on periodic intervals as survival benefit.

Money back life insurance. This type of policy is more important if you are married or have children but even single people can benefit from having life insurance. Term life insurance policies are more affordable than other types of life insurance policies usually costing 30 40 a month for a 30 year 500 000 policy for healthy people in their 20s and 30s. The policy expires at the end of the term which can last up to 30 years.

Life insurance can meet several financial needs. It provides death benefit protection for 10 15 20 25 or 30 years depending on the company and what you choose. In the case of someone who s married with a family it can replace lost income help to pay any lingering debts after your death or pay for your children s college education. Far from it actually.

Here you re buying a policy that pays a stated fixed amount on your death and. Long term financial planning and an opportunity to earn returns on maturity. The most basic type of life insurance is called term life insurance where you choose the amount you want to be insured for and the period for which you want cover. Life insurance or life assurance especially in the commonwealth of nations is a contract between an insurance policy holder and an insurer or assurer where the insurer promises to pay a designated beneficiary a sum of money the benefit in exchange for a premium upon the death of an insured person often the policy holder.

Term life insurance is a type of life insurance that provides a death benefit to the beneficiary only if the insured dies during a specified period if the policyholder survives until the end of the period or term the insurance coverage ceases without value and a payout or death claim cannot be made. It is a policy that is in effect for you guessed it a term or a certain period of time.