Life Insurance Terms To Know Life Insurance Types

Money back plan is a unique type of life insurance policy wherein a percentage of the sum assured is paid back to the insured on periodic intervals as survival benefit.

Auto insurance general auto insurance group. Term life insurance as the name suggests provides life insurance for a limited period of time or term. Pays the people you chooseyour spouse children or other beneficiariesa fixed amount of money if you die. The policy tenure can be any period ranging from 1 year to 100 years or whole life depending on the types of life insurance plan and its terms and conditions.

With term life insurance consumers select a. It offers temporary coverage and pays a one time lump sum to your beneficiaries when you die within the term. The policy expires at the end of the term which can last up to 30 years.

Money back life insurance. Term life insurance is the most straightforward type of policy. While term life insurance is pretty simple to understand permanent life insurance comes in many forms with investment options that increase their complexity.

Benefit of endowment plan. Term life insurance is typically sold in lengths of one five 10 15 20 25 or 30 years. Thanks to its lower premiums its the best choice for shoppers who have financial dependents but only need life insurance for a specific period of time.

Term life insurance is the simplest and usually the most affordable type of life insurance you can buy. Term life insurance policies are more affordable than other types of life insurance policies usually costing 30 40 a month for a 30 year 500000 policy for healthy people in their 20s and 30s. Thats because its insurance that does one thing and one thing only.

Long term saving option for people with much lower risk appetite for investment. Long term financial planning and an opportunity to earn returns on maturity. Many a times it is also referred to as policy term or policy duration.

Coverage amounts vary depending on the policy but can go into the. It offers death benefit protection for a specific time period such as 10 years 15 years or 20 years. Other types of policies such as whole life universal life or variable life are considered to be permanent insurance and are designed to provide protection for the life of the insured.