Now lets come to another point ‘different
types of life insurance’
When buying
a life insurance one should know all the types and their particular
Features,
terms, rules, benefits. It will help in buying life insurance and our aim ‘ NO DOUBTS’ will be achieved because a doubt free client is always confident and
happy about his investments. So instead of wasting our time lets come to the
point
‘What are the different types of life Insurance?’
1)
Term
Life Insurance
2)
Universal
Life Insurance.
3)
Whole
Life Insurance.
:: Term Life Insurance ::
Term life Insurance as name is ‘term’ it
is designed to provide short time service (financial protection) like 10-15-20
years depending upon the service providers. Normally the premiums for such kind
of policies are paid (guaranteed) for that period of time and after that policies
may offer full coverage and changing short premiums into high range premiums. If
we look over the Term Life Insurance we will come to know that Term Life
Insurance is less costly as compared to the Permanent Life Insurance.
Ø Short period of Insurance.
Ø Low rates of premiums.
Ø Can be converted into another form.
Ø Best for working persons and
students.
::Universal Life Insurance ::
Universal Life Insurance is another form
of permanent Life Insurance. The protection of this Life Insurance remains for
whole life. But unlike the whole life insurance Universal Life insurance
policies are flexible and we have freedom to raise or lower the amount of
premiums. It means that one can design the premiums as per his need whenever he
wants to. Like whole life insurance the premiuims are higher than the term life
insurance. It has tax- deferred savings component.
Ø Flexible premiums.
Ø Full cover to life.
Ø Tax-deferred savings.
Ø Similar to Whole life Insurance.
::Whole Life Insurance::
The working of Whole life Insurance is
same as that of the Universal life
Insurance but the premiums are FIXED! It gives
fully coverage to Life as the
name is whole life insurance itself. Unlike term
whole life insurance has a cash
value. The cash value component serves as a
savings and later may Tax-deferred.
Ø Covers full life.
Ø Premiums are fixed.
Ø Cash value is there( in returns).
Ø Best permanent Life insurance.
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