Life insurance is a written agreement between the insurance holder and the insurer that guarantees to pay a sum of money to the beneficiary in exchange of premiums upon the death of the policyholder or upon events such as critical illness.
What are the different types of life insurance plans one can invest in?
Term life insurance: Term life insurance policy is the insurance offered by the insurance company that provides financial coverage to the policyholder for a specific period of time or on the death of the insurance holder.
Whole life insurance: Whole life insurance policy provides coverage to the insurer by regularly paying premiums to the insurance company until his or her death.
Money back policy: Money back policy is an investment plan that assures one of getting the percentage of the sum during the policy term. The benefit of this plan is that one does not have to wait for full policy terms to receive the profits from your investment.
Endowment policy: Endowment policy is the life insurance contract that covers to pay a sum of assured money after a specific period upon the survival or death of the investor.
What are the various benefits of life insurance?
- Keeps you and your family protected by giving a high-risk cover in case of unfortunate happenings.
- The life insurance policy provides death benefits to beneficiaries giving a secured future to your family.
- Life insurance policy gives you the benefit of taking policy loan in case of great need of money.
- Life insurance policy allows your family to receive assured income at regular intervals of time.
Check out the post right here to know life insurance global share, trends, segmentation, analysis and forecast to 2025. It has now become essential to create a backup for you and your family once you’re gone. Insurance policy investment helps an individual in need.
Hope you find this article informative.