Life insurance is frequently bought for one’s peace of mind. However, many individuals need to be sure that their friends and family remain monetarily secure after they die; due to this reason, they opt for life insurance policies.
We can say that life insurance is a policy between you and the insurance provider. You need to deposit a monthly or yearly premium for a single amount of cash for your friends and family in case of your passing, known as a demise benefit. That cash might assist them with covering things like clinical costs, burial service costs and other losses. In this blog, we have mentioned the types of life insurance and their benefits, which will help you know about it.
Types of life insurance Plans
» Term Life Insurance
Term insurance is a kind of life coverage contract that gives admittance to a specific time duration or a predetermined term of years. Let’s understand this policy with the help of an example. Suppose a policyholder dies within a certain period of time mentioned in the term life policy, a demise advantage will be paid.
» Whole Life Insurance
In this type of policy, a complete guarantee is provided to the insurer for the whole life. So this policy gives assurance for 100 years. Well, there is one condition that the insurer has to deposit the premium on time; only then will this policy assure death benefit to the assignees in case of any miserable happening.
» Universal Life Insurance
This is a sort of permanent life insurance where policyholders can get benefits up to the age of 95 to 120. The universal life insurance policy provides immense benefits that other policies don’t. The significant advantage is flexibility, allowing policyholders to change the premium amount at any time.
» Variable Life Insurance
This sort of insurance policy is an agreement between you and an insurance agency. It must meet specific protection needs, venture objectives, and expense arranging targets. This policy pays a predefined sum to your family or other assignees upon your passing.
» Mortgage Life Insurance
It is a type of policy that covers the borrower against the non-installment of EMI in the event of the borrower’s death. This insurance can be advantageous to get at the bank while you’re organizing your home loan.
Benefits of Life Insurance Policy
Let’s have a look at the benefits of Life Insurance plans to policyholders:
- Life insurance policies give definitive peace of mind. This way, people are assured that their family and friends will have a financial well-being net after their death.
- These policies offer double tax advantages.
- Live insurance policies allow policyholders to relish various investment opportunities.
- Life insurance plans offer flexibility, allowing borrowers to customize policies per their needs.
So, it was all about various types of life insurance plans and the benefits provided to the borrowers. We hope this complete will help you decide on the best life insurance policy for you.