Types Of Life Insurance

A life insurance is insurance on human beings. As per the policy the life insured can easily offer an assured sum of money to his dependents in case he meets death or an accident, resulting in loss of income. It is true that human life cannot be valued by a sum of money but one can always offer a sort of security in terms of money and confidence to your loved ones.

There are two major types of life insurance

  1. Term
  2. Whole life

A whole life insurance is also known as permanent life insurance. The policy includes several sub categories including traditional whole life, variable universal life & variable life.

Term insurance is the simplest form of life insurance. The insurance company would pay the assured amount only in case of death that occurs during the term of the policy. The term of the policy is generally from one to 30 years. Usually, a term policy does not offer any other benefit. The whole life insurance is very popular among people and it is said that in the year 2003, about 7.1 million individual life insurance policies were bought as compared to 6.4 million individual life insurance policies, bought that year.

  1. Term insurance: Term life insurance policy is available in two principle types including level term & decreasing term.
  2. Level term insurance policy: Level term refers to the policy wherein the death benefit stays the same throughout the duration of the policy.
  3. Decreasing term insurance policy: Decreasing term actually means that the death benefit drops by one-year increments over the course of the policy’s term.

Whole life insurance: Whole life insurance or permanent insurance offers the death benefit whenever you die. Even if you continue to live up to 100-years you can be, rest assured that the death benefit would reach your loved ones.
The cost per $1, 000 of plan increases as the insured gets old. The amount really reaches its best state when the insured continues to live up to the age of 80 or beyond.

In this case, the company charges a premium and it rises each year. Since, it becomes really difficult for the person to pay the premium as he or she ages, the company generally, keeps the premium level by keeping a charge over a premium that in the previous years, is slightly more that whats required to pay insurance claims

Choose the life insurance that suits your requirement today & enjoy the benefits later in life.

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