There are many companies in existence today that offer life insurance policies. Although the crux of the policy (ensuring a safe and solid life of survivors of an individual as well as the individual) does not yet alter the companies try to differ among themselves by making different classifications or bifurcations.
Broadly, life insurance is divided into two parts.
1. Term life insurance Poline life insurance - Anyone can opt for term life insurance. This type of policy is basically meant to cover the short term requirements of a person. For example, if the policyholder unfortunately encounters a serious accident, he can ask for the amount of the insurance. But it also compensates the bereaved in the event of the death of a family member. Overall, this is a policy that helps cover the potential need for short-term life insurance.
Term life insurance is generally a renewable and convertible program. It varies from one to a hundred years. If it is a one-year program, the cost of its coverage increases after each year until it expires. Typically, expiry is at age 75. Whereas if the policy is at age 100 with cash value, it subsequently becomes part of the “whole life” insurance. Very often it is found that it is cheaper to buy a whole life insurance policy than a non-value policy in value 100.
2. Permanent Life Insurance - This is life insurance for the entire life of the individual. The value of this policy increases throughout the time one participates in the program. Terms such as PAR and NON-PAR are widely used in this context. Whole life coverage generates dividends that are a partial return to the premium paid for coverage and investment growth. The amount of dividends continues to change every year. On the other hand, peerless life insurance policies offer no dividends. Future cash values in these cases are not projected but assured or guaranteed.
• In addition to all these full compensation bonus policies are also available. In these, there is a fixed premium that one has to pay for quitting a short interval of time until it is fully paid. The death benefit in this policy is leveled and paid when the premium ceases.
• The whole life insurance policy can also be split in terms of the premium payable for 15 years, 20 years and 65 years. The terms and conditions in these cases remain more or less the same.
• Universal life insurance policy is for people who need life insurance, have a large marginal tax bracket, have large REP and pension contributions, paying good income tax from investment, want to have additional future income and have an investment prospect for at least 10 years. These policies are considered the most difficult of all insurance contracts.
