Term life insurance With a term life insurance policy, you choose how much you want to be insured for, over a certain period. If you die during this time, the policy will pay out to your beneficiaries. If you don't die during this time, the policy won’t pay out and what you've paid in won't be returned to you. This is something you'll need to think about when deciding what types of life insurance are suitable for you. Level term life insurance policies: A level-term policy pays out a lump sum if you die within the specified term. The amount you’re covered for remains the same, and usually your monthly or annual fees will be the same, too. Decreasing term life insurance policies...
Continue reading...
Types of Life Insurance Plans and Policies in India Thanks to the increasing awareness, especially among young working professionals, people now understand the importance of a life insurance policy. In case of your unexpected death, a life insurance policy will provide your family with the much-needed financial support. While no amount of money can ever make up for the loss of a dear one, the financial help could at least reduce the impact of loss to an extent. But to make the right life insurance buying decision, you first need to understand the different types of insurance products available in the market. Whether you've decided that you want to purchase life insurance or just thinking...
Continue reading...
What are the different types of life insurance available? There are many kinds of insurance, but they generally fall into two categories: term insurance and permanent insurance. Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of the term, which can be from one to 30 years. The premium rates increase at each renewal date. Many policies require that you present evidence of insurability at renewal to qualify for the lower rates. Permanent insurance provides lifelong protection. As long as you pay the premiums, the death benefit will be paid. These policies...
Continue reading...
If you have people who depend on you financially, you’ve probably considered life insurance before. If you’re holding off taking it out because you’re not sure which policy to choose, this comparison should help. Here are the different types of life insurance we offer, what the lump sum might be used for, and the milestones that tend to motivate people to get cover. Why take out a life insurance policy? The idea behind any type of life insurance is to have the reassurance that you have financial protection in place for you and your loved ones if the worst happens. It’s the knowledge that if a valid claim is made on your policy during the term of your cover, a tax-free lump sum would be...
Continue reading...
Understanding Different Types of Life Insurance Life insurance is one of the most common employer-provided benefits. This article covers the basics of life insurance and the different types employers can offer to employees. Types of Life Insurance Life insurance is divided into two categories: term and permanent (also sometimes referred to as whole). Term life insurance Term life insurance has a specified coverage period (term), but can usually be renewed or converted into a permanent policy at the end of the term. Premiums are generally affordable initially, but can increase substantially when renewed. Whole life insurance Whole life insurance is a type of permanent insurance that offers...
Continue reading...
There is no one-size-fits-all category, so different types of life insurance are available to help people have a choice of cover that suits their lifestyle. Life insurance can require more thought than other types of insurance. For example, when people are looking to insure a car, they mostly want the same thing; to ensure that they are protected financially in the event of an accident and can get back on the road as quickly as possible. Life insurance works in exactly the same way but, because the impact of losing a loved one can be much more far reaching, there is more to consider. How does life insurance work? Life insurance works by paying out a lump sum when you die. You might want it...
Continue reading...
A guide to life insurance The concept of life insurance brings up questions such as “What exactly is life insurance?”, “Which type is the best?” and maybe even On this page, you'll find information about the basics of life insurance without any jargon or confusing language. While life insurance has many facets, it's a good idea to begin by defining what it is? What is life insurance and how does it work? A life insurance policy is a contract between you and your insurer. The insurance company agrees to pay a specified amount to the person or people chosen as beneficiaries in the event of the insured person's death. You pay a certain amount of money to the insurer for this coverage. This is...
Continue reading...
Term life insurance Coverage for a defined period of time Consider term life insurance if you have a temporary need for coverage, a limited budget or a particular business application for it. Limited time period. The main purpose of term life is to pay out proceeds (referred to as a “death benefit”) if the insured individual dies during a set period of coverage – typically 10 years or more. You receive no benefits after the policy expires. Cost-effective. Compared to other types of life insurance, term life tends to be the least expensive coverage. Return of premium (ROP). ROP term life insurance is a specialized type of term life. With this type of policy, at the end of a guaranteed...
Continue reading...
What is life insurance? Life insurance is a financial security for any unfortunate event that is inevitable with human life like sudden death, physical disability, accident and retirement. Human life is always associated with the risks of untimely death and physical impairment due to natural and accidental causes. There would be a loss of income to the family when a human life is lost or permanently or temporarily disabled. The value of human life can never be determined because there are a lot of other things besides money, that a human can provide in his/her existence. However, the insurers determine a lump sum by considering the loss of income to the family in future years. In life...
Continue reading...
Here are different types of life insurance plans: Such a policy provides risk cover for a specific period of time with no savings/profit component. A fixed sum of money, or the sum assured, is paid out if the policy holder expires during the policy term, otherwise there are no payments made. Since it provides pure life cover, premiums are cheaper than other policies. A whole life policy covers the policy holder for his or her entire life. The validity of the policy is not defined; the insured pays premiums till his or her death when the corpus is paid out to the family. The policy expires only at the death of the individual. An endowment plan provides risk cover with financial savings. A...
Continue reading...
