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Life Insurance from Wikipedia
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness.
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Life Insurance Types
Life Insurance for Short Term or Long Term without any other benefits called Term Life Insurance.
Whole Life Insurance requires more premium than term life insurance but provides cash value after maturity or upon the unfortunate covered event. You can get your money back (although not adjusted for inflation) after maturity. Term will usually be long term.
Universal Life Insurance is similar to Whole life Insurance except that it gives higher interest rate to be paid after maturity. Both types also offer loan facility. But the premium and additional charges will be higher for this.
Accidental Death insurance only covers the insured for the accidental or sudden death from health related problems, motor accidents, or suicides. Due to their limited nature of coverage their premium cost is much less.
Limited Pay insurance is a permanent life insurance type like the above which covers for long term (10, 20 or 30 years) but the premium payments are contracted only for short time period say 5 years and still cover for the entire insured period. Premium value in this case can be very high.
Other than this there are similar limited insurance types covering people with existing health problems or diseases, smoking people or insurance for a group of people etc.
All insurance types have their own advantages and disadvantages. One should do thorough research on what needs to be insured and why, affordability or cost value of insurance contract, a realistic time period for which insurance is needed. Fortunately in this competitive market there is always a life insurance available for your needs.
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3 comments:
Many institutions limit access to their online information. Making this information available will be an asset to all.
I greatly enjoyed reading the whole post and do found so many points that will help in me in deciding which life insurance policy should I do consider for myself. Each type is explained so well that I am cleared with what type will actually suit be best. Thanks.
Great blog, I especially like the pictures, is that India? Personally I chose to go with Term Life Insurance and while able to get Instant Term Life Insurance quotes that I was happy with.
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