Various Types of Life Insurance
Getting life insurance coverage is important, and it should be take. Most families or individuals get life insurances coverage so that they can protect themselves any life-threatening calamity that might befall them. When individuals gets their life insurance done, they are more at peace, secure in the knowledge that if something happens to them, then their families would be taken care of.
Generally, there are many types of life insurances, which are available on the market. The most popular of the lot are Term Life and Whole Life. The other insurances, which are fast gaining popularity, are mostly variations of these two.
This life insurance is an insurance policy, which is guaranteed to cover the customer over a specific period or term. Generally, the policyholder pays the same rate over the entire period of the policy and guaranteed a specific amount of cash at the time of death.
There is a wide range of alternatives when the time period of Term Life has to be opted for. It can vary from one year to thirty years. There are basically two variations of Term Life insurance cover- level term and decreasing term. In the level term, the rate remains the same over the entire period and some cash is given to the family at the time of death. But the decreasing term plan entails a reducing rate, which gets the amount to decrease over the years also.
Most people generally opt for the level term because of the substantial amount of cash their families will be entitled to in the event of the policyholder's death or maturity. Apart from this, there is also the renewable plan, which gives the customer the option of renewing the policy once the term is over. This is very helpful for those people who would not be normally eligible for Term Life.
This life insurance policy has an different working mechanism from Term Life insurance cover. In this plan, the family of the deceased gets the benefit amount irrespective of whether the policyholder dies in one month or in 90 years. In this plan, the payments always remain the same and so does the death benefit. There are some variations of this plan, which allow people to withdraw a part of the policy amount in the form of cash whenever they need it.
And a few more types of life insurances…
There are many other types of life insurances, some of which deserve a mention out here. There is the Universal Life insurance plan, which gives more options to the policyholder than Whole Life plans. One can increase the benefit amount as and when they please and they can also withdraw cash whenever they feel like it.
The Variable Life insurance plan is also quite popular and is quite similar to the Universal Life plan. In this policy plan, the holder gets an added savings account, which earns interest on the payments. The money that is in the savings account can also be invested in stocks, bonds and the like.
Get Competitive Insurance Quotes
We provide referrals to insurance agents so you can get fast, free quotes. Compare prices and save money!