What are the different types of life insurance policies? Insurance is like a safety net to us. These are groups of policies that ensure that we are going to get financial assistance when unfortunate events occur. These unfortunate events can be deaths, accidents, injuries, and many others. There are insurance policies that are meant to shoulder each of these. However, among them all, the most commonly gotten are life insurance policies. Life insurance policies are policies that entitle beneficiaries money when the insured dies. There are different types of life insurance policies. They are geared to one goal however they are of different characteristics. The most common types of life insurance policies include the whole life policy, limited life policy, endowment policy, joint life policy, convertible policy, and many others.
The whole life policies are types of life insurance policies wherein the premiums are paid throughout your entire life. The entire sum of the insured will then become payable when he passes. Here, the insured will continue to pay his premiums as long as he lives. Among all the different types of life insurance policies, these are the cheapest. This is because this is the one that you will most likely pay the longest.
Next, we have the limited payment life policy. These are types of life insurance policies wherein the insured does not have to pay for his premiums until he dies. When you are getting a limited payment life policy, you will be asked to choose from different terms that entails a number of years. These numbers of years will be the time you will be paying for the premiums. When the insured dies, then his beneficiaries will get the amount of the premiums that the insured paid for.
Endowment policies are types of life insurance policies that are only available to a certain age group or probably a limited period. Here, the sum of the insurance will be payable when the insured reaches the age that he specified during the time he was getting the insurance. The premiums, however, will only be paid after the said endowment period. Here, the premiums are higher than that of the others. However, many people opt to get this as this can be two things – a life insurance policy and a pension.
Joint life policies are types of life insurance policies wherein there are two lives involved. These are the insurance policies that are bet applied by business partners. Also, couples can get these types of life insurance policies. The sum assured will be payable when the specified term ends. Also, if one of the partners pass, the sum assured will also be payable.
Convertible life policies are types of life insurance policies that provide the utmost protection at the smallest cost. These policies are also the ones that offer the most flexible contracts. This is because every five years, you can choose to alter the terms of the contracts. Hence, you will be able to make the most out of the insurance policy y that you have paid for in so many years.