Life Insurance is a type of insurance that covers the life of a person. It can be defined as a contract between the insured person and the insurance company.
As per this agreement, the insurance company pays a certain sum of money to the beneficiaries after the death of the person who has been insured by the policy. The insured person pays a premium at fixed intervals of time to the insurance company.
In most cases, money is paid if insured events take place. By insured events it is meant that the death of the person who purchased the insurance is because of the events that have been specified in the contract. The most common type of insured event that is specified in a contract is serious illness.
Many types of life insurance plans are available for people these days. A feasible plan can be selected by a person according to his needs and requirements and after comparing the various types of insurance plans.
A term life insurance plan is the most commonly used life plan that is opted for by many people. Also known as a temporary life policy, this plan covers the life of the insured person for a specified period of time. This period may be 5 years, 10 years or even 20 years. During the term of the policy, if the person insured dies, the insurance company pays the sum of money to people who have been named as beneficiaries in the contract. On the other hand, if the term of the policy ends and the policy is not renewed, the beneficiaries are not paid any cash benefits.
Whole Life Insurance plans are the ones which cover an individual for his or her entire life. There is no fixed time interval after which the policy expires. When the policy holder dies, the insurance company pays a specific sum of money to the beneficiaries named in the policy.
The amount of premium for whole life time insurance remains the same throughout the life of a person. This is mainly because the cost of this type of insurance is spread over many years. In this type of a policy, cash gets accrued over time and is paid in a lump sum.
Universal life insurance is the type of life policy in which the insured person is covered till his death. The value of this policy is divided into cash and death benefits. The cash benefits in this type of policy do not accrue over time and can be withdrawn as and when required by the policy holder. - 33372
As per this agreement, the insurance company pays a certain sum of money to the beneficiaries after the death of the person who has been insured by the policy. The insured person pays a premium at fixed intervals of time to the insurance company.
In most cases, money is paid if insured events take place. By insured events it is meant that the death of the person who purchased the insurance is because of the events that have been specified in the contract. The most common type of insured event that is specified in a contract is serious illness.
Many types of life insurance plans are available for people these days. A feasible plan can be selected by a person according to his needs and requirements and after comparing the various types of insurance plans.
A term life insurance plan is the most commonly used life plan that is opted for by many people. Also known as a temporary life policy, this plan covers the life of the insured person for a specified period of time. This period may be 5 years, 10 years or even 20 years. During the term of the policy, if the person insured dies, the insurance company pays the sum of money to people who have been named as beneficiaries in the contract. On the other hand, if the term of the policy ends and the policy is not renewed, the beneficiaries are not paid any cash benefits.
Whole Life Insurance plans are the ones which cover an individual for his or her entire life. There is no fixed time interval after which the policy expires. When the policy holder dies, the insurance company pays a specific sum of money to the beneficiaries named in the policy.
The amount of premium for whole life time insurance remains the same throughout the life of a person. This is mainly because the cost of this type of insurance is spread over many years. In this type of a policy, cash gets accrued over time and is paid in a lump sum.
Universal life insurance is the type of life policy in which the insured person is covered till his death. The value of this policy is divided into cash and death benefits. The cash benefits in this type of policy do not accrue over time and can be withdrawn as and when required by the policy holder. - 33372
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