Life Insurance Policies

Life Insurance is an agreement or contract between the insurance company and the policy holder, in which the insurance company assures the payment of a particular amount of money if the insured person dies or passes away.For this, the policyholder pays a specific amount at regular intervals, which is known as the premium.
The designated beneficiary of the policy receives the associated benefit if an event occurs that is covered by the policy.

The events that are covered in a life insurance policy are:

• Death
• Accidental Death

The following conditions are not covered but they can be insured by other insurance forms or riders on life policies:

• Diagnosis of a terminal illness
• Diagnosis of a critical illness
• Disability arising from ill health
• Necessity of Long Term Care
• Permanent Disability

Life based policies can be categorized into two main types:

Investment Policies: The primary goal of investment policies is to support capital growth in terms of payment of single or regular premiums.

Protection Policies: Offer benefits in the form of lump sum payments when a covered event occurs.

Life Insurance can be categorized into two main classes, temporary or permanent, and further classified according to the following subdivisions: Term, Universal, Whole Life, Variable, Variable Universal, and Endowment Policies. Temporary (Term): Temporary Life Insurance (Term Assurance According to British English) offers life insurance coverage for a stipulated time period.

Permanent Life Insurance: This type of insurance policy is active until the time of maturity, but if the policy holder fails to pay the premium when it is due, the policy will expire.

Permanent life insurance can be generally categorized into three types:

• Whole Life Coverage
• Universal Life Coverage (UL)
• Endowment Policy

Life Insurance can be categorized into two main classes: Temporary and Permanent or following subdivisions: Term, Universal, Whole Life, Variable, Variable Universal, and Endowment Policies.

Temporary (Term): Temporary Life Insurance (Term Assurance According to British English) offers Life Insurance Coverage for a stipulated time period for a certain amount of premium.

Permanent Life Insurance: This type of Insurance Policy is active till the time of maturity, but if there is a failure on behalf of the policyowner for the payment of premium when it is due, the policy will expire.

Permanent Life Insurance can be generally categorized into three types:

• Whole Life Coverage
• Universal Life Coverage (UL)
• Endowment Policy