Types of Life Insurance

May 18, 2012 0 Comments

life insurance

The life insurance comes in various forms as per the needs of the consumer. Few of the basic types are mentioned below-

Term Insurance

This type of policy is a contract between the insured and the life insurance company to pay the persons. She/he has given entitlement to receive the money, in the case of his/her death, after a certain period of time. The policies can be taken for various years such as 5, 10, 15, 20 or 30 years.

Endowment

In an endowment policy, periodic premiums are received by the insurer and the amount is received either on the death of the insurer or once the policy period expires.

Money Back

This policy offers the payment of partial survival benefits (money back), as is determined in the contract, while the insurer is alive. In case the insureris dead during the period of the policy, the beneficiary gets the full sum insured without the deduction of the money back amount given so far.

Group Life Insurance

This policy occurs when the group of people have been named under a single Life insurance policy. It is common for an employer or a company to add employees under the same policy. Each member of the group has a certificate as legal evidence of insurance for life.

Unit Linked Insurance

ULIPs (Unit Linked Insurance Plan) offer the insurer the dual benefit of protection from any hazard and investment opportunities. ULIPs are linked to the market where the insurer’s money is invested to help earn additional financial benefits.

Life insurance calculator is used to access the needs of any kind of life insurance of an individual.

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