Types Of Life Insurance Policies

It provides death benefit protection for 10 15 20 25 or 30 years depending on the company and what you choose.

Types of life insurance policies. Indexed universal life insurance is a type of universal life insurance policy that allows the policy owner to choose to invest the policy s cash value. Term life insurance is typically sold in lengths of one five 10 15 20 25 or 30 years. Term life insurance is the first of the two major types. The policy expires at the end of the term which can last up to 30 years.

What are the different types of life insurance. It is a policy that is in effect for you guessed it a term or a certain period of time. Coverage amounts vary depending on the policy but can go into the. Broadly speaking life insurance can be further categorized as a pure risk coverage plan purely insurance and the other which is a combination of insurance and investment component.

Whole life policies a type of permanent insurance combine life coverage with an investment fund. 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. Depending on the contract other events such as terminal illness. Here you re buying a policy that pays a stated fixed amount on your death and.

An endowment policy is defined as a types of life insurance policies that is payable to the insured if he she is still living on the policy s maturity date or to a beneficiary otherwise. If you die within the term the policy pays out to your beneficiaries. Today there is a wide variety of life insurance policies available the most basic of which are term and permanent. Here s a brief guide to different types of life insurance policies.

Endowment plans provide you with a dual combination of protection and savings. 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. Know the various life insurance plans to select the right one at the right time. 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.

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.