Life Insurance Policy Types

Different types of policies can be appropriate for different people depending upon their age, needs, and appetite for risk.

Life insurance policy types. Term life insurance is the first of the two major types. The main two categories of life insurance are term life insurance (which lasts for a set term) and permanent life insurance (which never expires). Term life insurance is a type of life insurance product that covers you for a specified length of time, called a term, and pays a set amount to your beneficiaries if you die, within the term.

Underwriting is how the insurer figures out how much to charge you. As you might expect, this type of life insurance is much more expensive than other types of policy which last for a set time period. Different types of life insurance policies in india.

In addition to selecting one of the above types of life insurance, you'll also choose an underwriting process. There are five different types of life insurance policies available, and here are their features and benefits: What are the different types of life insurance?

You pay a premium to an insurance company for a specific number of years and in return, in case you were to meet with an untimely. Life insurance assures financial protection in unforeseen situations. The policy covers two individuals for one fee.

As such, the face value of the policy is low, less than $20,000. While some other types of life insurance policy offer maturity benefits, term insurance does not. The way term life insurance works is that you pay a set monthly premium (like $30.00 per month), for a specific amount of coverage (like $100,000), for a set period or term length (like 20 years).

No matter which type of life insurance you choose, it is very important to understand the specific rules and terms of each type of insurance and each specific policy. If you die within the term, the policy pays out to your beneficiaries. A whole life insurance plan is a life insurance policy that gives you life coverage for 99 years.