Monday, January 20, 2020

Different Types of Life Insurance Products

We all know the importance of life insurance in one's life. Getting a life insurance for families policy is one of the most critical investments of one's life where he or she can secure the entire future of the family in case of one's untimely death. When we talk of life insurance, people generally think of only life insurance wherein fact the insured dies, the family gets the entire amount of the insurance policy. Over the years, the insurance companies understood the requirement of insurance and investment in one policy is what people are looking for. Therefore, a new policy offering for life insurance was brought in the market, which has a lot of features to offer. Due to this, we can see a lot of new different insurance policy types in the market. Let's have a look at a few of the life insurance products available in the market.

Term Life insurance

Term life insurance is very similar to a life insurance policy where a person's family gets the entire amount of the insurance policy in case of an untimely death. The main benefit of the term life insurance for many people is the way to pay the premium and low amount. The primary benefit of a term insurance plan is that a person can pay the premium amount monthly, quarterly, half-yearly, and yearly, whichever is convenient. Second, the premium of the term insurance plan is very affordable when compared with a life insurance plan.

Key Person Insurance
Key person insurance is life insurance for a critical or key person in your business and provides coverage for the business in the event of the key person suffering disability or death. Many businesses have an employee or employees that are crucial to the business, whether they are technical specialists, a manager, or senior executives. Key person insurance gives peace of mind to the business owner that should anything happen to this employee, the business can continue operations without significant disruption.

Whole Life Insurance

As the name suggests, the entire life insurance terms cover a person's life for his or her full age or up to the age of 100 years, whichever is applicable. This type of life insurance covers every scenario that can lead to an untimely death, and the person has to pay the premium until he or she is alive. In case of death, the insured's family will get the entire amount.

Endowment life insurance policy

A little high on the premium amount, but great for people who want to pay the premium as both investment and life insurance. This type of life insurance policy has a higher premium amount. The insured will pay the premium, which will be invested by the life insurance company. In case the covered faces an untimely death, the family will get the sum assured in the policy. If the insured outlives the policy duration, he or she will get the entire amount back with interest accumulated through investment.

Burial Insurance

This life insurance policy is available from providers like globe life and is intended to deliver a sum of money for the purpose of covering funeral costs. Some policies do not pay lump sums but allow families to claim back funeral expenses up to a certain amount. This can be beneficial for families who may not be able to afford upfront costs for burials.

Money Back Policy

One of the safest insurance policy for an individual where he or she wants to cover the life and get the entire amount in case he or she outlives the policy period. With an increased premium amount, a person can make sure that in the case where he survives the policy, they will receive the entire premium amount for the policy period. This policy does not invest the amount in any market; therefore, the final amount will be the principal amount paid over the years.

These are some of the most common and popular life insurance products available in the market. You might or might not pay an extra premium amount for any of these products, but they are beneficial in the case where a person wants more from the invested amount. These plans not just provide financial assurance to the family but profits in case the person survives the policy period.







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