In today’s uncertain world, Life insurance is becoming a necessity. By definition, Insurance is a legal agreement between two parties (Insured and Insurer); in which one party (insured or policy holder) agrees to pay premiums, and in return, another party (insurer) agrees pay certain amount of money on the event of loss. Now in this day and age, everyone should have an insurance policy because the probabilities of mishappenings have been increased due to today’s hustle and bustle.
In today’s post, we will be discussing on types of life insurance. Presently, insurance companies have launched many life insurance products in insurance market. Some life insurance products cover only the event of death; and some add riders or endorsements to give extra benefits to insured (See: 10 Important Things to Consider Before Buying a Life Insurance Policy). Depending on the features, there are three basic types of Life insurance;
3. Endowment Life Insurance
Endowment life insurance policy is apt for all age groups. Endowment life insurance policy pays a lump sum after maturity period (usually 10, 15, 20 yrs) or on death. Endowment policies do not cover insured lifetime and the premiums are higher in endowment policies than permanent life insurance policies. If policy holder survives the policy term then he/she will get assured amount along with benefits; otherwise, if he/she does not survive then nominee or beneficiary receives the assured amount along with benefits stated in your policy.
Some more insurance products related to life insurance;
- Group Life Insurance
- Cash Back Term Life Insurance