The Different Types of Life Insurance Explained

There are many companies today that offer life insurance policies. While the crux of the policy (ensuring individual survivors and the individual’s safety and soundness of life) has not changed the company has attempted to Classification or bifurcation.

Basically life insurance is divided into two parts.

1. Term Life Insurance Policy

Anyone can choose term life insurance. This type of policy basically caters to a person’s short-term needs. For example in the unfortunate event that the insured suffers a serious accident he can claim the insurance amount. But it also compensates for the loss of a loved one Death of a family member. All in all this is a policy that helps meet potential life insurance needs in the short term.

Term life insurance is usually a renewable and convertible plan. It ranges from one to one hundred years. If it’s a one-year plan then its insurance premiums increase after each year until it expires. Generally the due date is 75 years old. And if the policy term is 75 years old 100 along with the cash value then becomes part of the “lifetime” insurance. It is often noted that buying a whole life insurance policy is cheaper than buying a non-cash policy worth 100 clauses.

Add a Comment

Your email address will not be published.

Contact Us