types of life insurance policies pdf

Broadly, there are 8 types of insurance, namely: Life Insurance; Motor insurance; Health insurance; Travel insurance; Property insurance; Mobile insurance; Cycle insurance; Bite-size insurance; Simply knowing the various insurance policies does not help. Before I get into the details of all the different types of life insurance policies it’s important to understand the actual process of getting life insurance. Term life insurance With a term policy, you get "pure" life insurance coverage. If the insured dies within the stated term, the insurance company pays the death ben-efit to the beneficiary. 0000196925 00000 n '�ŨC��KiQ\�-%��-�)�e�5��%�(+J��*"; *+��+�3 �/�* 0000163722 00000 n << 0000054104 00000 n 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. Types of Life Insurance Policies: Overview: Term Life Insurance: Provides full risk cover against any type of eventuality. <> They provide life cover with no savings / profits component. Types of Life Insurance Policies in India. Life insurance covers the dependents in case of the untimely death of the policyholder. 0000163987 00000 n There is a wide range of insurance policies, each aimed at safeguarding certain aspects of your health or assets. /Creator <504446344E455420332E312E312E302028687474703A2F2F7777772E6F32736F6C Types of life insurance policies` Given below are the basic types of life insurance policies. 0000004608 00000 n It is a type of life insurance that provides death benefits to the beneficiaries if the insured person dies during a specific time. 6 0 obj Term life insurance is a popular option because it boasts benefits that are attractive to people of most ages and situations. 0000199604 00000 n /Subtype /Type1 You can choose from 10-year, 20-year or even provide you with protection into retirement age. /BaseFont /Helvetica This means that their funds have the opportunity to grow a great deal more than the funds in a whole life policy can. It is suitable for those people who have lower income at present, and they hope for increment in income in the near future. 0000010738 00000 n A life insurance company may combine features from these basic forms into a policy specifically designed to meet the expected needs of the market. endobj 0000016544 00000 n Instead, you must know how each of … >> 0000002034 00000 n 0000181635 00000 n 0000002663 00000 n Term insurance is a level premium, low-cost policy that is in force for a defined period of time and for a specific benefit amount. endobj Endowment Life Insurance Policy: Provides the combined benefit of life insurance cum saving. This form of policy is normally cheaper than other forms of term life insurance. three basic kinds of life insurance. /Subtype /Type1 Unfortunately, the price usually remains about the same, so most people opt for level term. /Subject <> << Buying life insurance is one of the most selfless financial gestures you can make. 0000054035 00000 n /Subtype /Type1 0000004931 00000 n In most cases, group life insurance gives you coverage that’s 1x to 2x your annual salary. /BaseFont /Helvetica-Bold # Types of Life Insurance Policies >> Money back plans are also eligible to receive the bonuses declared by the company from time to time. /Name /Font_E18EAA5EE8CC47EE9C591508E7131B60 0000043975 00000 n Unlike auto, home, or renters insurance you can’t just sign up online today and be covered tomorrow. The reimbursement under the policy can be withdrawn on the event of death or maturity of the policy. << We recommend you avoid survivorship life policies altogether because a survivorship life policy, which is also a type of cash value policy, pays absolutely zero benefit to anyone until both spouses die . These types of life insurance policies offer a death benefit, as well as a cash component. ϪRb��/�e�sR6:eG��_��٬�/�Ԯ� Շr�!o�V��c��;8��ڮm%��R��^�@F��Sj�Cv��{�?G�*�@'t��P7ѯM��`� /e��b��;��#�i�EV��Z�=�E߭��ЦR�)g�[�M�\Ҏ�2�]��]z��jJۭ�;G?��o'B��dԍX�t� 9�>�=}9��d��#F&�,l�dY�. /Type /Font 0000037471 00000 n %�� 1 0 obj 3 0 obj Are term insurance, whole life insurance and endowment insurance. 0000003217 00000 n trailer <]>> startxref 0 %%EOF 234 0 obj<>stream 0000140768 00000 n << H�\�͎�@��. 0000182066 00000 n The premiums for term insurance are usually Term insurance is the most basic type of life insurance. /Name /Font_EDEE14DB86E6428FB0A280BD12A9B46A >> Different Types of Life Insurance Policies (Permanent) There are, in general, four different kinds of permanent life insurance policies. �� 浓�{�-[��]�Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �Z� �2�H�u��6�>�? 0000002180 00000 n Whole life insurance: Covers the insured for their whole life; benefits 0000037728 00000 n The policy is written for the term of the policy, usu-ally from one to 30 years. Online term insurance plans provide pure risk cover, which explains the lower premiums. Term life insurance With a term policy, you get "pure" life insurance coverage. 0000028959 00000 n With permanent life insurance, you get lifetime coverage. endobj 0000196645 00000 n Permanent life insurance typically comes with a cash value and has higher premiums. Whole Life Insurance. 0000179387 00000 n However, with the wide variety of insurance policies available, you may find choosing the right one difficult. It is beneficial as long as it fits your budget. 0000132894 00000 n /Name /Font_725A7356478446BFB94049F71FCB890E 4 0 obj 0000198952 00000 n 0000132554 00000 n 0000132485 00000 n 0000003812 00000 n Here, you're buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company. They are the most affordable form of life insurance as premiums are cheaper compared to other life insurance plans. 0000054437 00000 n This article is here to answer some burning questions – starting with: What are the various kinds of life insurance? It's really not as confusing as it seems, however, once you understand the basic types of life insurance policies. endobj 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. /Type /Font %PDF-1.4 %�� 2E636F6D2F29> 0000022855 00000 n When the term ends, the insur-ance ends. 0000001858 00000 n 0000178736 00000 n 0000049911 00000 n With this type, the premium amount has a lock-in period and will remain the same throughout your entire lifetime. /Type /Font 0000179016 00000 n In 2018, 4.0 million individual life insurance policies bought were term and about 5.9 million were whole life, according to the Whole-life policies, a type of permanent insurance, combine life coverage with an investment fund. The whole life policies are types of life insurance policies wherein the premiums are paid throughout your entire life. This type of life policy pays the lender the remainder of your mortgage, which decreases as you make your monthly loan payments. Group life insurance is a type of life insurance that you get through work. Convertible whole life insurance policy: It is that type of policy which can be converted to endowment life insurance policy after a certain time. 1. Types of Life Insurance Policies May 20, 2016 You know that you need life insurance. If joint life insurance policies don’t make much sense, then survivorship or second-to-die insurance life policies are a complete waste of your money (and doubly hard to talk about). This type of policy has a time frame attached to it, meaning that a payment will be made to your beneficiaries if you die within the specified period, either as a lump sum or monthly instalments. Types of Life Insurance Policies; Here at Quick Quote Life, we want you to understand your life insurance options in full – after all, we’re here to help not to hinder! /Subtype /Type1 It provides death benefit protection for 10, 15, 20, 25, or 30 years (depending on the company and what you choose). Whole Life Insurance: Offers life insurance coverage till 100 years of age. 5 0 obj Term life or “temporary” insurance: Provides coverage for a defined time period, generally five, 10, or 20 years; pays cash benefits to a named beneficiary if the insured dies during the term of the policy. x�bb�e`b``Ń3��~0 �\� endstream endobj 176 0 obj<>/ViewerPreferences<>/Metadata 16 0 R/Pages 15 0 R/StructTreeRoot 18 0 R/Type/Catalog>> endobj 177 0 obj<>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 178 0 obj<> endobj 179 0 obj<>stream /BaseFont /Helvetica-Oblique Term life insurance These types of life insurance policies provide both a fixed premium (the amount you'll pay) as well as a fixed death benefit (the amount we'd pay your family). Many a times, it is also referred to as policy term or policy duration. @��?��G�''/�O��ێ@ �� _��٬�/��ͨ�E� �yǍ�C�f/%s.�QJ�_�Qcۊ)]��֍c��I��1E+�5b�Wt�v��f>]f�HY��d��J�M8��(��ſ��RV�|�*%D ��i�2�kSƖ��(�^��!E�R'�.��{nԟ�2��9q*/��. /ModDate <443A32303136303532303136303635392D303027303027> The three basic types of life insurance. Whole, universal, indexed universal, variable, final expense, and group are all types of permanent life insurance. All other life insurance policies are built around these basic insurance policies by combining various other features. There is a distinction between the types of insurance one is life insurance and other is non-life or general insurance. 0000036527 00000 n 0000004078 00000 n �� JFIF �� C �� C�� x�" �� This way, policyholder can meet short-term financial goals. /Encoding /WinAnsiEncoding 2 0 obj /CreationDate <443A32303136303532303136303635392D303027303027> The Best Life Insurance Policy While there are many hybrids of the following types of life insurance options, we have focused on the core products. /BaseFont /Times-Roman This type of life insurance policy pays out its sum in the form of an income, instead of as one lump payment. Types of Insurance - 1. 0000044470 00000 n Life Insurance. Because the life insurance coverage of a non-level policy decreases over time, you might expect this type of life insurance to cost less. stream Term life insurance policy can be purchased only for a fixed period of time like 10 or 20 years. Therefore, it can be said that life insurance policies compensate for the financial loss the family to a great extent and does not worsen the unfortunate tragedy. Whole-life policies, a type of permanent insurance, combine life coverage with an investment fund. The reason for this is that the insurer will end up paying out less than they would on other policy types. The proceeds of a policy offer valuable financial comfort that can be used to help your family pay bills, such as the mortgage, child care, and other day-to-day expenses. ENDOWMENT POLICY FEATURES • Simple policy with guaranteed returns • Protection & Savings Plan • Sum assured is paid to the beneficiary on the death of the insured or on the maturity of the term. /Encoding /WinAnsiEncoding 0000043486 00000 n Whole of life insurance can also be referred to as life assurance. It is a policy that is in effect for – you guessed it – a term, or a certain period of time. x�b```f``�b`c`��`b@ !V�(�F�]Q��`�Xx�|U�#�Bm��E$��b=�! 175 0 obj <> endobj xref 175 60 0000000016 00000 n The different types of life insurance policies exist to help provide a safety net for your loved ones if you were to pass away. 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. >> Permanent life insurance is an umbrella term for several types of products. types of life insurance policies 33 insurance policies pure insurance term plans insurance cum investment policies whole life plans unit linked insurance money back endowment plans 34. Term Insurance Policy. However, with the wide variety of insurance policies available, you may find choosing the right one difficult. 2E636F6D2F29> Final Expense and Burial Insurance are both types of whole life insurance policies that focus on people between the ages of 50 to 85. 0000197269 00000 n 0000043512 00000 n 0000110259 00000 n The main two categories of life insurance are term life insurance (which lasts for a set term) and permanent life insurance (which never expires). Mortgage insurance. endobj Types of Life Insurance Policies. General: Health Insurance Motor Insurance Travel Insurance Home Insurance Fire Insurance 2. 0000035183 00000 n 0000197640 00000 n Whole life . Types of Life Insurance Policies You know that you need life insurance. The type of policy that I am going to discuss in this post will be Term Life Insurance. There are two major types of life insurance—term and whole life. %PDF-1.4 The following list will break down eight of the most common life insurance policy types, as well as provide some recommendations on what might be the best product from among our picks for the best life insurance companies. Under the umbrella of Permanent are products such as whole life, universal life, index universal life and variable universal life. Term Life Insurance. 0000181364 00000 n Term plans are the most basic type of life insurance. /Title <> 0000036989 00000 n There are six types of life insurance policies. << /Name /Font_165B272C96CC4B7DA8147544C908AB8E However, with variable life insurance, the policyholder can take part in a variety of different investment options such as equities. It is the purest form of permanent life insurance. Types of Insurance Policies: In India, insurance is broadly categorized into three categories: • Life Insurance • General Insurance • Pocket Insurance offered by Bajaj Finserv Let’s learn a little more about the types of insurance: 1. 0000044001 00000 n /Encoding /WinAnsiEncoding Money Back Insurance Policy 0000197243 00000 n (V��)�tR��*�Gu š@�� FA% 0l��(��-��H��y�� ~�IS�M��H2��1�� ?X��.�9��r�Z�� L�E\f��d��L��W�`x_��D��19 �kD',8`백!��Oy�NY ��L�� p�O�x-@� *fR" endstream endobj 233 0 obj<>/Size 175/Type/XRef>>stream Term Life Insurance. /Author <> Most term life insurance policies run for between 10 and 25 years, although the exact length will depend on your own needs. Whole of life insurance . 0000004189 00000 n 0000035962 00000 n 0000035688 00000 n >> It's really not as confusing as it seems, however, once you understand the basic types of life insurance policies. 0000078517 00000 n /Type /Font Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. Life Insurance: Term Life Money-back Policy ULIP Pension Plans /Encoding /WinAnsiEncoding 0000199223 00000 n Many people have at least some life insurance coverage as part of their employee benefits plan. 0000035031 00000 n 0000043340 00000 n 0000044611 00000 n 0000196994 00000 n 1. /Producer <504446344E455420332E312E312E302028687474703A2F2F7777772E6F32736F6C Before knowing how to choose the best life insurance policy, first, you must know what are the types of life insurance policies actually exist in India. 0000001496 00000 n As an individual, you will be covered under the Life insurance policy. 0000132214 00000 n 0000034630 00000 n /Keywords <> These policies won’t offer more than $25,000 in death benefit and are much easier to get approved for if you can’t get a traditional life insurance policy. The ‘policy tenure’ is the duration for which the policy provides life insurance coverage. Term Life Insurance is the first of the two major types. 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