subject: 3 Different types of life insurance policies that you can get [print this page] 3 Different types of life insurance policies that you can get
This article highlights 3 different types of life insurance policies that you can get from the market. They are term insurance policy, whole life policy, and endowment policy.
Types of life insurance policies
The 3 types of life insurance policies are given below:
1. Term insurance policy: This type of policy is for a fixed period of time. Generally, this type of life insurance policy has low premium cost. This type of life insurance policy provides coverage to the family of the policy holder on the event of his death. However, the insurance company will provide this coverage only when the policy holder dies within the policy time.
For example: you have taken a term policy of $ 60000 for about 15 years. Your family will get the insured amount only when you have died within this 15 years.
2. Whole-life policy: In these types of life insurance policies, you have to pay premiums for your entire life. In return this policy will give you life-long protection. This means that your family will get the insured amount on the event of your death, irrespective of when it happens. This is the basic difference between the term life insurance and the whole life policy. But this policy does not provide coverage for any other kind of needs of the policyholder. That is why, this insurance policy is not very popular.
3. Endowment policy: This is the most popular life insurance policy. In this kind of life insurance policy, the family of the policyholder will get the insured amount on the event of death of the policy holder within the policy term. However, if the policy holder is alive after the policy term, then the life insurance company offers the insured amount plus some investment benefits such as double endowment, marriage, education endowment plans, etc to the policy holder.
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