subject: Life insurance provider – providing service for your future life [print this page] Life insurance provider providing service for your future life
Everyone will be looking for a best life insurance provider. Mostly all the people will be looking for a Best life insurance provider who provides the best service at best rates. The life insurance providers, provides the policies on the basis of duration of policy, method of payment of premium, participation in profit, number of lives covered and method of payment of claim amount. Life insurance policies according to the duration may be whole life insurance and term insurance policy. The policies according to the payment of premium may be of single premium policy and limited payment whole life policy.
Policies according to participation in profit may be without- profit policy and with- profit policy. On the basis of number of persons insured in a policy, the policy may be single life policy, multiple life policy, joint life policy and last survivorship policy. And finally, life insurance policies on the basis of method of payment of claims may be lump- sum policies and installment or annuity policies. In life insurance policies, generally the policies may be with profit or without profit. Though the customers does not get any profits in without -profit policy, some prefer this type of policy because the premium rate is lower in without- profit policy when compared to with- profit policy.
If the policyholder discontinues the policy, then he/ she will receive the surrender value. The surrender value is the cash value of policy which is payable to policyholder if he / she decides to terminate the contract. This surrender value is usually obtained from the paid- up value by applying a percentage factor. This percentage factor will vary according to the plan of assurance, the original term of the policy and the duration elapsed since the commencement of the policy.
The surrender value is the amount of premiums paid which is returned to the policyholder at the time of surrendering the policy. Normally, the life insurance provider will not pay the surrender value if the policy lapses within two or three years of its issue because of expenses involved during the inception of the policy. Generally, the life insurance provider surrenders the policy for cash after the premium have been paid for at least two years or to the extent of one- tenth of the total number stipulated in the policy, provided such one- tenth exceeds one year premium.
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