Know about Kinds of Life Insurance Policies

Know about Kinds of Life Insurance Policies

It’s a type of life insurance policy that falls into the entire protection category. It offers pure protection. Basically, it covers the risk of dying. In this plan of action, the sum assured amount that your insurer promises to pay would be provided to the nominee or beneficiary as stated in the policy document in the event of insured’s death. If you survive in the policy term period, then you are certain to get nothing or could possibly get your premium back which basically varies from insurer to insurer. If you are preparing to buy pure life risk cover, then term insurance is the best and cheapest type of life insurance policies.

Whole Life insurance

The remaining portion of the plans that come under life insurance such as endowment plan, cash back plans, ULIP, etc. provides coverage to the insured for a particular age- majorly 65 to 70 years, whereas a very existence plan provides coverage for the entire life. In this plan, generally, the insured is given a choice to pay reasonably limited amount till the specified time which is also called maturity period. If the insured person reaches maturity, then she or he has the choice to continue exactly the same till death without paying any extra premium and encashing the sum assured or bonuses. Buy Instagram Followers UK

Endowment Plan

Unlike Term Plan, endowment plan pays you out the sum assured combined with the profits in both the cases- death and survival. This course of action charges a higher premium which will be being dedicated to the asset market- Equity and Debt. An endowment is a questionnaire of life insurance in which the insurer promises to cover the lump sum amount during the time of maturity. Majorly maturities are ten, fifteen or twenty years up to and including definite age limit. Some plans also pay an amount in case of critical illness. Endowments amounts can be cashed early and the insured will receive the surrender value which may be determined basis how long the policy has been running and how much has been committed to it.

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