Types Of Life Insurance

There are different types of life insurance available at our disposal and everybody can avail of it. So long as they can pay up the fee and follow them up every month or every other month depending on what insurance policy you got that is. When people get insurance they don’t usually think of themselves but of the welfare of their family. You see most of the time the ones who benefit from those payouts are those who are listed as beneficiaries. Not to say that you have to die for them to have gotten the insurance but partly it’s that. Though there are other modes of insurance out there the most common one is the death insurance. All policies are not created equal since they come in many forms and vary in cost, structure and duration to suit the needs of people with various needs and situation. What are the different types of life insurance policies anyway?

Whole life policy – you will pay your premiums throughout your existence and the insured sum is retrievable during the death. It is in force for as long as you live as long as you pay for it. The premium under this policy has the cheapest charges as well. If you want to be able to pay for your estate, do charitable provisions and ensure the financial status of your family when uncertainty takes you away then this is perfect for you. But you will have to continue paying even if you are old and unemployed.

Convertible whole life – covers those who cannot pay for the larger premium needed for their whole existence or endowment assurance policy.

Limited payment – you can choose to pay your premium in a selected number of years. You will be able to determine how much cash you will need to cover all your payments. It is able to meet the needs of your family.

Endowment policy – this is in force for a limited period or up to a certain age. It means the assured sum is payable when you reach that particular age or if the period expires. Premium is higher under this policy and must be paid until its maturity.

Double endowment – paying twice the cost of your assured amount if you live on after the date of maturity. Premiums must be paid until the maturity of selected years or death.

Joint – covers two lives. The sum is payable after a selected term or death of either the two.
With or without profit policies – with profits, you can share a corporation’s profits by way of bonuses and the premium is high. It is payable at the maturity of the policy. With without profit policy, no profit is allowed but the premium is lower.

Fixed term (marriage) endowment policy & education annuity policy – premiums and benefits are payable on selected term or up to death. The assured amount is paid in lump sum for fixed term and equal half yearly installments in five years for an educational annuity.

Annuities – premiums can be paid regularly over a targeted period or a lump sum of money can be paid at the beginning. The insured sum is payable monthly or annually after attaining a definite age.
No matter what you hear enticing from your agents or broker, only you can determine which of the life insurance types is ideal for your case. Understand everything and find the best company that can assist you in signing up for a contract.