There are different types of life insurance available, and people are generally confused as to which one to buy. But actually there are only four types of life insurances; they are term life insurance, whole life insurance, variable life insurance, universal life insurance. All these products will vary from company to company, but their base is the same. All the life insurance policies have their own advantages and disadvantages. This article will give you a brief idea of all the different life insurances.
Insurance is a cover that protects you from any untoward happening that may occur anytime and anywhere. It takes care of your losses, thus resulting in protection from adverse happening. There are many types of life insurance products available in the market today, but the most popular of them all are the Term life insurance and Whole life insurance. Term life insurance is the cheapest in terms of monthly premium, while whole life insurance is slightly costly then the term life insurance.
If something happens to you then the beneficiary will be paid the full rate of the policy. In term life insurance the money is not invested and is kept as a fixed deposit to save the money in case the policy holder dies. The disadvantages of this policy is that if nothing happens to the policy holder till the time the policy is alive and the policy expires then the entire money invested in this policy is kept by the insurance company and you have to buy a fresh policy for future and even that is provided to you a higher premium because term life insurance premiums are co-related to a persons age.
In whole life insurance, both the parties that are the insurer and the beneficiary are benefitted. Since whole life insurance is a policy where the money you invest in this policy is reinvested in the market and the insurance company earns profit out of therefore the facilities provided under these policies are more. Whole life insurance also has a face value. The greater the face value, more beneficiary for you. The profit that the insurance company earns out of your investment is shared by the company by you after removing the working cost out of it. This way the premium on the policy is subsidized and you are benefitted out of it.
This way the insurance company earns some profit which is generally passed on to the customers in the form of dividends. The biggest disadvantage of this policy is that it does not take into account of your present liabilities. For example if you started with this policy at the age of 25 when you were single and if now you are 60 years of age, still it will treat you as a single person and only with those liabilities which were there at the time of purchasing the policy. This means that when you die, the pay out which your beneficiary receives is lower and may not be sufficient then your present liabilities. - 15431
Insurance is a cover that protects you from any untoward happening that may occur anytime and anywhere. It takes care of your losses, thus resulting in protection from adverse happening. There are many types of life insurance products available in the market today, but the most popular of them all are the Term life insurance and Whole life insurance. Term life insurance is the cheapest in terms of monthly premium, while whole life insurance is slightly costly then the term life insurance.
If something happens to you then the beneficiary will be paid the full rate of the policy. In term life insurance the money is not invested and is kept as a fixed deposit to save the money in case the policy holder dies. The disadvantages of this policy is that if nothing happens to the policy holder till the time the policy is alive and the policy expires then the entire money invested in this policy is kept by the insurance company and you have to buy a fresh policy for future and even that is provided to you a higher premium because term life insurance premiums are co-related to a persons age.
In whole life insurance, both the parties that are the insurer and the beneficiary are benefitted. Since whole life insurance is a policy where the money you invest in this policy is reinvested in the market and the insurance company earns profit out of therefore the facilities provided under these policies are more. Whole life insurance also has a face value. The greater the face value, more beneficiary for you. The profit that the insurance company earns out of your investment is shared by the company by you after removing the working cost out of it. This way the premium on the policy is subsidized and you are benefitted out of it.
This way the insurance company earns some profit which is generally passed on to the customers in the form of dividends. The biggest disadvantage of this policy is that it does not take into account of your present liabilities. For example if you started with this policy at the age of 25 when you were single and if now you are 60 years of age, still it will treat you as a single person and only with those liabilities which were there at the time of purchasing the policy. This means that when you die, the pay out which your beneficiary receives is lower and may not be sufficient then your present liabilities. - 15431
About the Author:
Whenever you purchase any life insurance policy online, make sure you avail the great options available at Todd Martin's site for all your term life insurance, and whole life insurance.
