What is Life Insurance
Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime. Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
Types of Life Insurance
Many different types of life insurance are available to meet all sorts of needs and preferences. Covid has caused many Americans to take stock of their lives and finances, and plan ahead in case they’re not around. A Forbes Advisor survey found that 46% of U.S. adults say that the Covid pandemic led them to consider buying life insurance or taking out additional life insurance.
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable life insurance
- Burial insurance/funeral insurance
- Survivorship life insurance/joint life insurance
- Mortgage life insurance
- Credit life insurance
- Supplemental insurance
Term Life Insurance
A term life insurance policy is the simplest, purest form of life insurance. You pay a premium for a period of time – typically between 10 and 30 years and if you die during that time a cash benefit is paid to your family. Term coverage only protects you for a limited number of years, while whole life provides lifelong protection. If you can keep up with the premium payments.
Whole life insurance
Whole Life Insurance Plans are insurance plans which provide cover to you for the rest of your life provided you pay the premium on time. You receive maturity benefit in case you survive the policy term. The nominee appointed by you receives the death benefit in case of your death.